Rural Labour Markets: Insights From Indian Villages

Asia-Pacific Development Journal Vol. 21, No. 1, June 2014

30 Pages Posted: 4 Nov 2014

See all articles by A Amarender A. Reddy

A Amarender A. Reddy

Indian Agricultural Research Institute (IARI); National Institute of Agricultural Extenion Management (MANAGE)

Date Written: June 30, 2014

Abstract

In this paper, labour market behaviour in rural India is examined, with the objectives of assessing the structure of the work status among sample individuals and of testing segmented labour market theory. Simple regression techniques and an estimated modified Mincer equation to determine earnings are used in the paper, followed by the application of multinomial regression analysis. Labour markets are segmented based on social background to some extent, which is in line with segmented labour market theory based on caste, sex and assets. Most of the more highly educated remain unemployed due to a lack of sufficient employment opportunities, even though higher education increases the probability of being engaged in regular employment. However, households invest heavily in children’s education in the hope that they will obtain regular employment. Policies that promote asset ownership, household savings and skills development would increase people’s chances of obtaining regular employment with higher earnings.

Keywords: rural labour markets, India

JEL Classification: J01, J31, J43.

Suggested Citation

Reddy, A Amarender A., Rural Labour Markets: Insights From Indian Villages (June 30, 2014). Asia-Pacific Development Journal Vol. 21, No. 1, June 2014, Available at SSRN: https://ssrn.com/abstract=2518402

A Amarender A. Reddy (Contact Author)

Indian Agricultural Research Institute (IARI) ( email )

New Delhi
India

National Institute of Agricultural Extenion Management (MANAGE) ( email )

India

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