ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Economics

Income Distribution and Aggregate Demand in the Indian Economy

Does there exist a trade-off between labour income share and output growth rate? Or does a reduction in the wage share reduces the output growth rate? These questions remain central for analysing the impact of change in income distribution on the output growth rate. Since the dilution and suspension of labour laws involve exogenous changes in income distribution, the impact of such policies would depend on the relationship between income distribution and aggregate demand. This paper attempts to lay bare this relationship for the Indian economy through an empirical analysis of India’s macro data and a theoretical model based on the regression results.

 

Agricultural Transformation or Compromising Food Security

A response to the paper “Water and Agricultural Transformation in India: A Symbiotic Relationship—I” by Mihir Shah, P S Vijayshankar, and Francesca Harris (EPW, 17 July 2021) argues that the solutions proposed in the paper will neither revolutionise India’s agriculture sector nor minimise the water and soil problems listed.

 

Should We Abolish the Minimum Wage?

While heated debates persist in developed countries regarding the continuation of the minimum wage laws, they still remain popular around the world. Unemployment concerns around the minimum wage fade away when the monopsony nature of the labour market is taken into consideration. Given the distinct nature of workers earning minimum wages in low-income countries when compared to high-income ones, it remains significantly effective in tackling inequality in the former. The job polarisation because of the labour-replacing technologies of today underlines the importance of such a measure. Thus, there is still a need for minimum wage, more so for low-income countries.

 

Surviving Debt and Survival Debt in Times of Lockdown

This research has been made possible due to the financial support of the Agence Universitaire de la Francophonie (AUF), through the COVINDIA project, which combines food distribution to villagers and a survey of villagers’ survival tactics and strategies. For more details, see https://odriis.hypotheses.org/projects#covindia. We sincerely thank Barbara Harriss-White, Judith Heyer, Solène Morvant-Roux, and Jean-Michel Servet for their helpful comments on an earlier draft.