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Technology Intensity and Employment in the Indian Economy

Author

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  • Shampa Paul
  • Kaushalesh Lal

Abstract

The article investigates the impact of technology on employment in key sectors of the Indian economy. The analysis encompasses services and manufacturing sectors. The services sectors include firms engaged in financial and non-financial segments, while manufacturing sector consists of firms engaged in production of consumer goods. The findings suggest that indicators that have affected employment in manufacturing sector are size of operations, import of capital goods and better human resource (HR) practices, while in financial services sector, the factors affecting employment are better HR policies, profitability and expenditure on Information and Communications Technology (ICT). Whereas in non-financial sector firms, import of capital goods and expenditure on training and welfare of workforce significantly influenced employment. The distinguishing finding is that association between employment creation and age of firms is negative in financial services sector, while age of firm is immaterial in manufacturing and non-financial sectors. The study uses Prowess database for the period between 2011–2012 and 2015–2016. JEL: O14, O15, O33

Suggested Citation

  • Shampa Paul & Kaushalesh Lal, 2021. "Technology Intensity and Employment in the Indian Economy," Arthaniti: Journal of Economic Theory and Practice, , vol. 20(1), pages 34-52, June.
    • Handle: RePEc:sae:artjou:v:20:y:2021:i:1:p:34-52
    DOI: 10.1177/0976747919895326
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    Cited by:

    1. Rajat Kathuria & Aakash Dev, 2024. "Technological Advancement and Employment Changes: Recent Trends in the Indian Economy," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 637-660, September.

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    More about this item

    Keywords

    Technological change; HR practices; manufacturing; services sector; GEE;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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