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Do Labor Intensive Industries Generate Employment? Evidence from firm level survey in India

  • Deb Kusum Das

    (ICRIER)

  • Gunajit Kalita

This study attempts to address the issue of declining labour intensity in Indias organized manufacturing in order to understand the constraints on employment generation in the labour intensive sectors. Using primary survey data covering 252 labour intensive manufacturing-exporting firms across five sectorsapparel, leather, gems and jewellery, sports goods, and bicycles for 2005-06 an attempt is made to find out the factors which constrain employment generation in labour intensive firms. The study shows several constraints in the path of employment generation in labour intensive sectorsnon-availability of trained skilled workers, infrastructure bottlenecks, low levels of investment, labour rules and regulations, and a noncompetitive export orientation. The study suggests a set of policy initiatives to improve the employment potential of these sectors.

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File URL: http://www.eaber.org/node/22912
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Paper provided by East Asian Bureau of Economic Research in its series Labor Economics Working Papers with number 22912.

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Date of creation: Jan 2009
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Handle: RePEc:eab:laborw:22912
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  1. Bhalotra, Sonia R, 1998. "The Puzzle of Jobless Growth in Indian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(1), pages 5-32, February.
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