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Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?

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  • Mukherjee, Dipa
  • Majumder, Rajarshi

Abstract

Tertiarisation of labour market has globally been associated with economic progress. But in developing countries, labour market deformities may push people into service economy out of distress also. This paper examines the tertiarisation process in Indian labour market to bring out the reasons behind such trends and the likely impact of such movements. It is observed that the employment growth in the tertiary sector had been dynamic and growth-induced during the eighties, but in the recent times has turned distress-driven. Sub-sectors within the tertiary sector are behaving differently indicating the heterogeneity of this sector. Policymakers should note these issues and take appropriate steps not only to boost high-end jobs but also to improve productivity and returns in low-end jobs. Then only tertiary sector revolution in India will be beneficial to the workers en masse and be sustainable.

Suggested Citation

  • Mukherjee, Dipa & Majumder, Rajarshi, 2008. "Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?," MPRA Paper 12755, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12755
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    References listed on IDEAS

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    1. Martin Feldstein, 1980. "The American Economy in Transition," NBER Books, National Bureau of Economic Research, Inc, number feld80-1, June.
    2. Victor R. Fuchs, 1980. "Economic Growth and the Rise of Service Employment," NBER Working Papers 0486, National Bureau of Economic Research, Inc.
    3. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, June.
    4. Richard E. Caves & Walter B. Wriston & James R. Schlesinger, 1980. "The Structure of Industry," NBER Chapters, in: The American Economy in Transition, pages 501-562, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pattanaik, Falguni & Nayak, Narayan Chandra, 2013. "Employment Intensity Of Secondary Sector In India: Trends, Patterns And Determinants," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 2(2), pages 157-174.
    2. Rajarshi Majumder, 2023. "The Employment Challenge in India: Hundred Years from ‘Ten days that shook the World’," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 37-59, March.
    3. Mukherjee, Dipa & Majumder, Rajarshi, 2023. "Youth employment in India: dimensions and challenges," MPRA Paper 120105, University Library of Munich, Germany.
    4. Vélez Tamayo, Julián Mauricio, 2018. "La Ley Petty-Clark en el Área Metropolitana del Valle de Aburrá en Colombia, en el periodo 2000-2016 [The Petty-Clark law in the Metropolitan Area of The Aburrá Valley in Colombia, in the period 20," MPRA Paper 85151, University Library of Munich, Germany.
    5. Vélez Tamayo, Julián Mauricio, 2016. "Sir William Petty y la conformación de la Ley Petty-Clark [Sir William Petty and the conformation of the Petty-Clark Law]," MPRA Paper 76345, University Library of Munich, Germany.
    6. Falguni Pattanaik, 2013. "Employment Intensity of Growth in India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 38(4), pages 483-503, November.

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    More about this item

    Keywords

    Tertiary sector; labour; sectoral transformation; inequality; India;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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