IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v61y2018i4d10.1007_s41027-019-0152-9.html
   My bibliography  Save this article

Determinants of Employment Potential in India’s Service Sector: The Post-reform Experience

Author

Listed:
  • Deepak Kumar Behera

    (National Institute of Technology Patna, Ashok Rajpath)

Abstract

Service sector in India has grown rapidly in the last one and a half decades. Its growth has been higher than the growth in other commodity-producing sectors such as agriculture and manufacturing sectors. If service sector becomes the leads the growth process, the pertinent questions are what is its potential to generate employment? Can we assume it as the emerging sector to accommodate the surplus labour? In other words, the present paper examines the employment dynamics in both organised and unorganised service sectors by empirically estimates the effects of macro-economic variables by using the data from 1972–1973 to 2011–2012. Considering the Keynesian theoretical explanation about the change in employment which depends on expected output or change in output, the empirical estimations corroborate the view that performance of service sector determines the capacity to generate employment in the sector where employment in organised services is positively influenced by non-services output, lagged output of services, human capital and net export and negatively associated with labour productivity, whereas employment in unorganised services is positively determined by non-services output and lag services output, but negatively influenced by productivity, technology and human capital.

Suggested Citation

  • Deepak Kumar Behera, 2018. "Determinants of Employment Potential in India’s Service Sector: The Post-reform Experience," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(4), pages 639-657, December.
  • Handle: RePEc:spr:ijlaec:v:61:y:2018:i:4:d:10.1007_s41027-019-0152-9
    DOI: 10.1007/s41027-019-0152-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-019-0152-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s41027-019-0152-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    2. Gary P. Sampson & Richard H. Snape, 1985. "Identifying the Issues in Trade in Services," The World Economy, Wiley Blackwell, vol. 8(2), pages 171-182, June.
    3. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
    4. Arup Mitra, 2009. "Impact Of Trade On Service Sector Employment In India," Trade Working Papers 22929, East Asian Bureau of Economic Research.
    5. Jagdish N. Bhagwati, 1984. "Splintering and Disembodiment of Services and Developing Nations," The World Economy, Wiley Blackwell, vol. 7(2), pages 133-144, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    2. Singh, Nirvikar, 2006. "Services-led industrialization in India: Assessment and lessons," MPRA Paper 1276, University Library of Munich, Germany.
    3. Bernard Hoekman & Carlos Braga, 1997. "Protection and Trade in Services: A Survey," Open Economies Review, Springer, vol. 8(3), pages 285-308, July.
    4. Krancke, Jan, 1999. "Liberalisierung des internationalen Dienstleistungshandels: Analyse des GATS und Perspektiven für die zukünftige Handelsliberalisierung," Kiel Working Papers 954, Kiel Institute for the World Economy (IfW Kiel).
    5. Bradford, Scott C. & Das, Satya & Saha, Anuradha, 2022. "Country size, per-capita income, and comparative advantage: services versus manufacturing," MPRA Paper 115091, University Library of Munich, Germany.
    6. Francois, Joseph & Christen, Elisabeth, 2010. "Modes of Delivery in Services," CEPR Discussion Papers 7912, C.E.P.R. Discussion Papers.
    7. Rashmi Banga, 2005. "Role of Services in the Growth Process: A Survey," Indian Council for Research on International Economic Relations, New Delhi Working Papers 159, Indian Council for Research on International Economic Relations, New Delhi, India.
    8. Agarwal, Jamuna Prasad, 1996. "Does foreign direct investment contribute to unemployment in home countries? An empirical survey," Kiel Working Papers 765, Kiel Institute for the World Economy (IfW Kiel).
    9. Hoekman, Bernard, 1995. "Tentative first steps : an assessment of the Uruguay Round agreement on services," Policy Research Working Paper Series 1455, The World Bank.
    10. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    11. Datta, Madhusudan, 2019. "Manufacturing sector in the Indian economy: Output-value added symbiosis," Journal of Asian Economics, Elsevier, vol. 63(C), pages 75-87.
    12. Rachel McCulloch & Maurice R. Greenberg & Lionel H. Olmer, 1988. "International Competition in Services," NBER Chapters, in: The United States in the World Economy, pages 367-422, National Bureau of Economic Research, Inc.
    13. Guerrieri, Paolo & Meliciani, Valentina, 2005. "Technology and international competitiveness: The interdependence between manufacturing and producer services," Structural Change and Economic Dynamics, Elsevier, vol. 16(4), pages 489-502, December.
    14. Szalavetz, Andrea, 2008. "A szolgáltatási szektor és a gazdasági fejlődés [The service sector and economic development]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 503-521.
    15. Anirudh SHINGAL & Pierre SAUVÉ, 2019. "The labour market effects of applied service regimes and service sector reforms," International Labour Review, International Labour Organization, vol. 158(1), pages 191-211, March.
    16. Koopmann Georg & Straubhaar Thomas, 2009. "Zur Internationalisierung des Dienstleistungssektors," Review of Economics, De Gruyter, vol. 60(2), pages 81-102, August.
    17. Bernard M. Hoekman & Robert M. Stern, 1991. "Evolving Patterns of Trade and Investment in Services," NBER Chapters, in: International Economic Transactions: Issues in Measurement and Empirical Research, pages 237-290, National Bureau of Economic Research, Inc.
    18. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    19. Andreja Benkovic & Juan Felipe Mejía, 2008. "Tourism as a driver of economic development: The Colombian experience," Documentos de Trabajo de Valor Público 10630, Universidad EAFIT.
    20. Keh, Hean Tat & Chu, Singfat, 2003. "Retail productivity and scale economies at the firm level: a DEA approach," Omega, Elsevier, vol. 31(2), pages 75-82, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijlaec:v:61:y:2018:i:4:d:10.1007_s41027-019-0152-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.