ISSN (Online) - 2349-8846

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Inequality in India–II

To determine the inequality in wage earnings, attention is paid to the distinction between formal and informal types of employment, and the returns to education. Alternative definitions to understand the formal–informal dichotomy are employed to show that employers are increasingly using “informal” workers in formal enterprises. In Part I of this paper (EPW, 29 July 2017), changes in household welfare as measured by per capita household expenditure were analysed.

Inequality in India–I

Examining the course of inequality in terms of average per capita expenditure, it is seen that the period after the reforms were initiated registered a dramatic increase in the relative growth of welfare in the top expenditure group, even as the poorest group progressed at a rate higher than the mean. The dip in the middle of the distribution disappeared later when a “ladder” pattern of growth was observed, with each quintile group showing a higher growth rate than the preceding one. The major reasons for this changing pattern are discussed in terms of the structure of growth in the Indian economy, particularly what happened in the tertiary and manufacturing sectors. The paper is being published in two parts. Part II will appear in the issue of 12 August. 

An Account of India's Employment and Labour Market Problems

Labour, Employment and Economic Growth in India edited by K V Ramaswamy, New Delhi: Cambridge University Press, 2015; pp xviii + 324, Rs 895 (hb).

Dissecting India's Unorganised Sector

Report on Conditions of Work and Promotion of Livelihoods in the Unorganised Sector by National Commission for Enterprises in the Unorganised

Growth of Employment and Earnings in Tertiary Sector, 1983-2000

The tertiary sector-led employment growth in recent decades in India is out of line with the experience of modern economic development. It has raised concerns about the level of earnings at which labour is being absorbed in this sector. This paper makes use of NSS data from the quinquennial rounds to throw light on whether labour is being pushed into this sector due to lack of opportunities in other activities. The movement of the distribution of the mean per capita expenditure over successive rounds shows that there has been not only an outward shift of the distribution in the tertiary sector but also an increase in inequality and "dualism" in the sector and within its critical sub-sectors.

Reforms and Employment Elasticity in Organised Manufacturing

Three periods may be distinguished showing large variations in employment elasticity in Indian manufacturing. The first period (1974-80) with an elasticity close to unity, the second (1980-86) with a negative employment elasticity ('jobless growth'), and the third (1986-96), the 'reform period' when employment started to recover along with an enhanced rate of growth of output, although employment elasticity did not reach the levels of the first period. The causes of the varying elasticities are diverse, but the decomposition analysis reported in this paper can throw some light on the relative importance of different factors affecting the variable.

Labour Markets, Trade Patterns and Workers-Living Standards

Labour Markets, Trade Patterns and Workers' Living Standards Dipak Mazumdar This article reviews the first three of the four parts of the World Development Report 1995 (WDR). No comments have been made on the last part because it was felt that the limited space given to the labour market problems in transition economies was simply not sufficient for an informative assessment of these problems.

International Comparisons and GNP Measures

International Comparisons and GNP Measures Dipak Mazumdar Lee Travers Cheena Trikha The relative economic strength of various Asian countries as well as their growth rates and rates of investment, consumption and government spending are in many cases quite different when evaluated in real GNP terms rather than the more traditional nominal GNP These differences affect not only a country's likely poverty outcomes but also the comparative evaluation of a host of other economic and social variables. This paper seeks to highlight some of the changes in perceptions of comparative Asian growth that derive from the real GNP estimates.

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