Structural change in employment in India since 1980s: How Lewisian is it?
Indian economy shows high levels of growth and per capita income in recent years accompanied by an unprecedented shift of labour from agriculture to non-agriculture during the last decade. Reallocation of labour from ‘traditional’ to ‘modern’ segments in an economy having large surplus labour was conceived in the Lewisian framework as the process by way of which both accumulation of capital and exhaustion of surplus labour takes place. This paper argues that the structural change in employment in India that results from the exclusionary nature of the growth process hardly approximates the Lewisian trajectory. Finally, in the context of globalisation this paper explains the responses of firms of various size categories in non-agriculture and argues that the shift in employment basically expands the ‘reserve army of labour’ in the Marxian sense instead of exhaustion of surplus labour conceived in Lewisian conjectures.
|Date of creation:||08 Dec 2007|
|Date of revision:||2008|
|Publication status:||Published in Social Scientist 11-12.36(2008): pp. 47-68|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
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- Lewis, W Arthur, 1979. "The Dual Economy Revisited," The Manchester School of Economic & Social Studies, University of Manchester, vol. 47(3), pages 211-229, September.
- Kirkpatrick, Colin & Barrientos, Armando, 2004. "The Lewis Model After Fifty Years," Development Economics and Public Policy Working Papers 30550, University of Manchester, Institute for Development Policy and Management (IDPM).
- Ranis, Gustav & Stewart, Frances, 1999. "V-Goods and the Role of the Urban Informal Sector in Development," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 259-288, January.
- Cooper, Charles, 1995. "Technological Change and Dual Economies," UNU-INTECH Discussion Paper Series 10, United Nations University - INTECH.
- Sukti Dasgupta & Ajit Singh, 2006. "Manufacturing, Services and Premature De-Industrialisation in Developing Countries: A Kaldorian Empirical Analysis," Working Papers wp327, Centre for Business Research, University of Cambridge.
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