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The Employment Potential of Labor Intensive Industries in India’s Organized Manufacturing

Author

Listed:
  • Deb Kusum Das

    (ICRIER)

  • Deepika Wadhwa
  • Gunajit Kalita

Abstract

This paper attempts to identify and examine labor intensive industries in the organized manufacturing sector in India in order to understand their employment generation potential. Using the data from the Annual Survey of Industries (Government of India, various issues), the labor intensity for 97 industries at the 4-digit disaggregate level was computed for the period 1990-91 to 2003-04. The study identifies 31 industries as labor intensive industries within Indias organized manufacturing sector. The study finds that labor intensity has declined not only for capital intensive industries but also for labor intensive industries during the selected time period. The increase in output failed to generate enough employment growth resulting in a significant decline in employment elasticity. The paper briefly highlights the plausible factors that could have had an impact on labor intensity as well as on the performance of the organized manufacturing sector over the study period.

Suggested Citation

  • Deb Kusum Das & Deepika Wadhwa & Gunajit Kalita, 2009. "The Employment Potential of Labor Intensive Industries in India’s Organized Manufacturing," Labor Economics Working Papers 22913, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:laborw:22913
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    File URL: http://www.eaber.org/node/22913
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    References listed on IDEAS

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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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    Cited by:

    1. Bishwanath Goldar, 2010. "Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics," Working Papers id:2483, eSocialSciences.
    2. Deb Kusum Das & Gunajit Kalita, 2009. "Do Labor Intensive Industries Generate Employment? Evidence from firm level survey in India," Labor Economics Working Papers 22912, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    Labor Intensity; Employment Growth; Labor Productivity; Capital Productivity; Organized Manufacturing;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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