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Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?


  • Mukherjee, Dipa
  • Majumder, Rajarshi


Tertiarisation of labour market has globally been associated with economic progress. But in developing countries, labour market deformities may push people into service economy out of distress also. This paper examines the tertiarisation process in Indian labour market to bring out the reasons behind such trends and the likely impact of such movements. It is observed that the employment growth in the tertiary sector had been dynamic and growth-induced during the eighties, but in the recent times has turned distress-driven. Sub-sectors within the tertiary sector are behaving differently indicating the heterogeneity of this sector. Policymakers should note these issues and take appropriate steps not only to boost high-end jobs but also to improve productivity and returns in low-end jobs. Then only tertiary sector revolution in India will be beneficial to the workers en masse and be sustainable.

Suggested Citation

  • Mukherjee, Dipa & Majumder, Rajarshi, 2008. "Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?," MPRA Paper 12755, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12755

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    Cited by:

    1. Vélez Tamayo, Julián Mauricio, 2018. "La Ley Petty-Clark en el Área Metropolitana del Valle de Aburrá en Colombia, en el periodo 2000-2016
      [The Petty-Clark law in the Metropolitan Area of The Aburrá Valley in Colombia, in the period 20
      ," MPRA Paper 85151, University Library of Munich, Germany.
    2. Vélez Tamayo, Julián Mauricio, 2016. "Sir William Petty y la conformación de la Ley Petty-Clark
      [Sir William Petty and the conformation of the Petty-Clark Law]
      ," MPRA Paper 76345, University Library of Munich, Germany.
    3. Pattanaik, Falguni & Nayak, Narayan Chandra, 2013. "Employment Intensity Of Secondary Sector In India: Trends, Patterns And Determinants," Journal of Regional Development and Planning, JRDP, vol. 2(2), pages 157-174.

    More about this item


    Tertiary sector; labour; sectoral transformation; inequality; India;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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