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

Author

Listed:
  • Deb Kusum Das

    (Indian Council for Research on International Economic Rela)

  • Deepika Wadhwa

    (Indian Council for Research on International Economic Rela
    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), thelabor 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 India's organized manufacturing sector. The study finds that labor intensity 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, "undated". "The Employment Potential of Labor Intensive Industries in India's Organized Manufacturing," Indian Council for Research on International Economic Relations, New Delhi Working Papers 236, Indian Council for Research on International Economic Relations, New Delhi, India.
  • Handle: RePEc:ind:icrier:236
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    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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