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The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal

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  • Paul, Saumik
  • Sarma, Vengadeshvaran

Abstract

Much of the debate on industrialization and displacement has, so far, focused on the optimum compensation for affected households. Our recently concluded study, comprising of a sample of 1017 households including 630 affected (displaced and land acquired) and 387 unaffected households, looks at the long-term livelihood effects of the Falta Special Economic Zone in West Bengal, India. The main findings indicate a lower labour market participation rate among affected household members. However, members of displaced households show the highest work participation rate in the industrial zone but with a lower return to education than others. Women earn about 17 percentage points less compared to men after controlling for education and experience and this gap is 5 to 10 percentage points higher for FSEZ employees; but this gap is narrowing over time likewise the gender education gap.

Suggested Citation

  • Paul, Saumik & Sarma, Vengadeshvaran, 2013. "The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal," ZEW Discussion Papers 13-083, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:13083
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    References listed on IDEAS

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    1. Kanika Mahajan & Bharat Ramaswami, 2017. "Caste, Female Labor Supply, and the Gender Wage Gap in India: Boserup Revisited," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 339-378.
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    3. Aggarwal, Aradhna, 2012. "Social and Economic Impact of SEZs in India," OUP Catalogue, Oxford University Press, number 9780198077275, Decembrie.
    4. Maitreesh Ghatak & Parikshit Ghosh, 2011. "The Land Acquisition Bill-- A Critique and a Proposal," Working papers 204, Centre for Development Economics, Delhi School of Economics.
    5. Ghatak, Maitreesh & Mitra, Sandip & Mookherjee, Dilip & Nath, Anusha, 2013. "Land Acquisition and Compensation in Singur: What Really Happened?," CAGE Online Working Paper Series 121, Competitive Advantage in the Global Economy (CAGE).
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    Cited by:

    1. Paul, Saumik & Sarma, Vengadeshvaran, 2014. "Are special economic zones a curse on those "chosen" to be evicted? : evidence form West Bengal, India," IDE Discussion Papers 472, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Saumik Paul & Vengadeshvaran Sarma, 2017. "Industrialisation-led displacement and long-term welfare: evidence from West Bengal," Oxford Development Studies, Taylor & Francis Journals, vol. 45(3), pages 240-259, July.

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    More about this item

    Keywords

    Industrialization; Special Economic Zones; Rural livelihoods; West Bengal; India;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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