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Destruction or Polarization : Estimating the I mpact of T echnology on Jobs in India n Manufacturing

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  • Pankaj Vashisht

Abstract

Indian manufacturers have invested significantly in technolog y upgradation s since the economy opened up to foreign trade and technology in the mid - 1980s . In this paper, we examine the impact of technology on employment and skill demand within the Indian manufacturing sector. Estimating a dynamic labour demand equation, we find that that despite reducing the required labour per unit of output, technology has not reduced the aggregate employment in the Indian manufacturing sector. However, qualitative effect of technology on lab our demand has been very significant. Our results show that adoption of new technology has increased the demand for high skilled workers at the cost of intermediary skills, leading to the polarization of manufacturing jobs. It suggests that technology has reduced the routine task content of manufacturing jobs in India.

Suggested Citation

  • Pankaj Vashisht, 2018. "Destruction or Polarization : Estimating the I mpact of T echnology on Jobs in India n Manufacturing," Working Papers id:12739, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12739
    Note: Institutional Papers
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    Cited by:

    1. Pankaj Vashisht & Nisha Rani, 0. "Automation and the Future of Garment Sector Jobs in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-22.
    2. Pankaj Vashisht & Nisha Rani, 2020. "Automation and the Future of Garment Sector Jobs in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 225-246, June.

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