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Rural Labor Markets: insights from Indian villages

Author

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  • A. Amarender Reddy

    (Principal Scientist (Agricultural Economics), Division of Agricultural Economics, Indian Agricultural Research Institute, New Delhi 110012, India)

Abstract

In this paper, labour market behaviour in rural India is examined, with the objectives of assessing the structure of the work status among sample individuals and of testing segmented labour market theory. Simple regression techniques and an estimated modified Mincer equation to determine earnings are used in the paper, followed by the application of multinomial regression analysis. Labour markets are segmented based on social background to some extent, which is in line with segmented labour market theory based on caste, sex and assets. Most of the more highly educated remain unemployed due to a lack of sufficient employment opportunities, even though higher education increases the probability of being engaged in regular employment. However, households invest heavily in children’s education in the hope that they will obtain regular employment. Policies that promote asset ownership, household savings and skills development would increase people’s chances of obtaining regular employment with higher earnings.

Suggested Citation

  • A. Amarender Reddy, 2014. "Rural Labor Markets: insights from Indian villages," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 21(1), pages 107-136, June.
    • Handle: RePEc:unt:jnapdj:v:21:y:2014:i:1:p:107-136
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    References listed on IDEAS

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    Cited by:

    1. A. Amarender Reddy & Surabhi Mittal & Namrata Singha Roy & Sanghamitra Kanjilal-Bhaduri, 2021. "Time Allocation between Paid and Unpaid Work among Men and Women: An Empirical Study of Indian Villages," Sustainability, MDPI, vol. 13(5), pages 1-17, March.

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    More about this item

    Keywords

    Labour economics; wage level and structure; wage differentials; agricultural labour markets;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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