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Employment growth in rural India: Distress driven?

Author

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  • Vinoj Abraham

    () (Centre for Development Studies)

Abstract

The 61st round of NSS shows that there is a turnaround in employment growth in rural India after a phase of `jobless growth'. Paradoxically, this employment growth occurred during a period of wide spread distress in agriculture sector that include low productivity, price instability and stagnation leading to indebtedness. Under the typical neoclassical tradition, this trend would have predicted further contraction of employment in the rural economy. However, further probing reveals that employment growth in the rural areas is probably a response to the crisis that is gripping the agriculture sector. Under conditions of distress, when income levels fall below sustenance then that part of the normally non-working population are forced to enter the labour market to supplement the household income. The decline of agricultural sector has also probably created forced sectoral and regional mobility of the normally working population with the normally non-working population complementing them.

Suggested Citation

  • Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
  • Handle: RePEc:ind:cdswpp:404
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    References listed on IDEAS

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    1. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
    2. K.N. Nair & Vineetha Menon, 2007. "Distress debt and suicides among agrarian households: Findings from three village studies in Kerala," Centre for Development Studies, Trivendrum Working Papers 397, Centre for Development Studies, Trivendrum, India.
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    4. K. Sundaram, 2007. "Employment and Poverty in India: 2000-2005," Working Papers id:1100, eSocialSciences.
    5. K.N. Nair & Vineetha Menon & Vineetha Menon, 2007. "Agrarian distress and livelihood strategies: A Study in Pulpalli panchayat, Wayanad District, Kerala," Centre for Development Studies, Trivendrum Working Papers 396, Centre for Development Studies, Trivendrum, India.
    6. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
    7. Bardhan, Pranab K, 1979. "Labor Supply Functions in a Poor Agrarian Economy," American Economic Review, American Economic Association, vol. 69(1), pages 73-83, March.
    8. Sharif, Mohammed, 1991. "Poverty and the forward-falling labor supply function: A microeconomic analysis," World Development, Elsevier, vol. 19(8), pages 1075-1093, August.
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    Citations

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    Cited by:

    1. Tripathi, Sabyasachi, 2016. "Determinants of employment and unemployment situation in India with Special reference to North Eastern states of India," MPRA Paper 71469, University Library of Munich, Germany.
    2. repec:ilo:ilowps:486789 is not listed on IDEAS
    3. Pieters, Janneke & Klasen, Stephan, 2011. "Drivers of female labour force participation in urban India during India's Economic Boom," Proceedings of the German Development Economics Conference, Berlin 2011 65, Verein für Socialpolitik, Research Committee Development Economics.
    4. repec:spr:ijlaec:v:59:y:2016:i:2:d:10.1007_s41027-017-0052-9 is not listed on IDEAS
    5. Ishwarya Balasubramanian, 2014. "Local skill concentrations and district employment growth: A Spatial simultaneous equation approach for India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-033, Indira Gandhi Institute of Development Research, Mumbai, India.
    6. Neetha N, 2013. "Inequalities Reinforced? Social Groups, Gender and Employment," Working Papers id:5274, eSocialSciences.
    7. Manik Kumar & Rahul Ranjan, 2015. "Wage Differential between Informal and Formal Wage Worker in India," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(4), pages 9-19, December.
    8. Sunil Mani, 2008. "Financing of industrial innovations in India How effective are tax incentives for R & D?," Centre for Development Studies, Trivendrum Working Papers 405, Centre for Development Studies, Trivendrum, India.
    9. Singh, Alka & Pal, Suresh & Jha, Girish Kumar, 2015. "Transitioning India's Public Expenditure in Agriculture towards Higher Growth and Equity," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3).
    10. Chaudhary, Ruchika. & Verick, Sher., 2014. "Female labour force participation in India and beyond," ILO Working Papers 994867893402676, International Labour Organization.
    11. Klasen, Stephan & Pieters, Janneke, 2012. "Push or Pull? Drivers of Female Labor Force Participation during India's Economic Boom," IZA Discussion Papers 6395, Institute for the Study of Labor (IZA).
    12. Murthy, P.S. Srikantha & Indumati, S., 2011. "Economic Analysis of MGNREGA in the Drought–prone States of Karnataka, Rajasthan and Irrigation–dominated State of Andhra Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), issue 2011.
    13. Abraham, Vinoj, 2011. "Agrarian distress and rural non-farm sector employment in India," MPRA Paper 35275, University Library of Munich, Germany.
    14. Majumder, Rajarshi, 2013. "A quarter of a century: mobility and stagnation in India’s rural labour market," MPRA Paper 60796, University Library of Munich, Germany, revised Oct 2014.
    15. repec:dem:demres:v:36:y:2017:i:52 is not listed on IDEAS

    More about this item

    Keywords

    Rural Employment; Gender; Rural Wages; Labour Participation; Poverty; Agrarian Distress;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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