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


  • Deb Kusum Das


  • Gunajit Kalita



This study attempts to address the issue of declining labour intensity in India’s 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 sectors—apparel, 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 sectors—non-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. [Working Paper No. 237]

Suggested Citation

  • Deb Kusum Das & Gunajit Kalita, 2010. "Do Labor Intensive Industries Generate Employment? Evidence from firm level survey in India," Working Papers id:2770, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2770 Note: Institutional Papers

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    References listed on IDEAS

    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.
    2. 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.
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    Cited by:

    1. Emmanuel Olusegun Stober, 2014. "The Influence of Labor Intensive Export on China's Economy Growth," Working Papers 3, Bucharest Academy of Economic Studies, Research Center in International Business and Economics (RCIBE).

    More about this item


    Indian Organized Manufacturing; Labor Intensity; Employment Growth; Skilled workforce; Wage structure; Export status; Machinery Usage; Labor laws; South Asia;

    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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