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Local skill concentrations and district employment growth: A Spatial simultaneous equation approach for India

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  • Ishwarya Balasubramanian

    (Indira Gandhi Institute of Development Research)

Abstract

The focus of this paper is to explore the role of spatial distribution of skills in explaining differential growth rates of employment across Indian districts between the years 2001 and 2011 by using data from Census of India. To measure skills across districts, we use the skill-content of occupations and the occupational distribution of workers across districts. We then model employment and population growth simultaneously taking into account spatial correlation of the endogenous variables. We find that a one standard deviation increase in (cognitive) skills is associated with 0.52 standard deviation increase in the growth rate of male main workers and a 0.42 increase in the growth rate of male non-farm main workers. However, female employment has significantly decreased in initially skilled regions.

Suggested Citation

  • Ishwarya Balasubramanian, 2014. "Local skill concentrations and district employment growth: A Spatial simultaneous equation approach for India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-033, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2014-033
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    References listed on IDEAS

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    More about this item

    Keywords

    Skills; Occupation; Employment Growth; Education;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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