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Regional Disparities in Employment Intensity of Indian Industries: A State-level Analysis

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  • Sanjeev Kumar
  • Falguni Pattanaik

Abstract

The pace of industrialization plays a crucial role in the economic growth of any country. It provides high employment opportunities to the labor force, diminishes the cost of production, upsurges the saving, and raises the demand for goods and services in the economy. Furthermore, it helps in relocating surplus labor from the agriculture sector. This study is an attempt to find the states in India wherein the industrial sector generates more jobs. It further unearths the decomposition of industrial output and the regional concentration and dominance of industrial activities in India. To accomplish the objectives, the study utilizes the secondary data collected from the Annual Survey of Industry. The period of the study is from 1980–1981 to 2013–2014, and it encompasses 18 major states in India. The findings of the study suggest that a weak relationship exists between employment and output of the industrial sector for the majority of the states during the study period. The decomposition results show that there exists a large degree of regional disparity in industrial growth across the states, which is mostly driven by labor productivity and not by an increase in the supply of labour. Therefore, in order to boost the industrial sector, the states lagging in industrial development should give more emphasis on state-specific industrial policy to attract more investment and create more infrastructure.

Suggested Citation

  • Sanjeev Kumar & Falguni Pattanaik, 2020. "Regional Disparities in Employment Intensity of Indian Industries: A State-level Analysis," Emerging Economy Studies, International Management Institute, vol. 6(1), pages 23-38, May.
    • Handle: RePEc:sae:emecst:v:6:y:2020:i:1:p:23-38
    DOI: 10.1177/2394901520907729
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    1. Seifallah SASSI & Mohamed GOAIED, 2016. "Long-term employment intensity of sectoral output growth in Tunisia," International Labour Review, International Labour Organization, vol. 155(2), pages 253-263, June.
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    Cited by:

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    2. Mauricio Apablaza & Kirsten Sehnbruch & Pablo González & Rocío Méndez, 2023. "Regional inequality in multidimensional quality of employment: insights from Chile, 1996–2017," Regional Studies, Taylor & Francis Journals, vol. 57(3), pages 416-433, March.
    3. Sanjeev Kumar & Falguni Pattanaik & Ajay K. Singh, 2021. "Modeling Trade–Employment Elasticity Nexus: Evidence from India," Emerging Economy Studies, International Management Institute, vol. 7(1), pages 62-75, May.
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