MRA has been developed by Youdi in 1985. It is one of the dominant model of MPP. It establishes linear relationship between manpower category in different industry groups & their output. Example – This model is used by our country for the educational planning at the national level. This model consists of 3 steps. These are (a) Assessing the demand for manpower, (b)Assessing the supply of manpower, ( c)Balancing the supply & demand. Demand side consists of some basic aspects such as – Estimation of future level of GDP. Estimation of distribution of output by economic sectors. Estimation of labor productivity by economic sector. Estimation of occupational structure of labor force within economic sectors. Estimation of educational structure of the labor force in given occupations within economic sectors over time. Supply side consists of Estimation of population & categorization on the basis of age, gender & educational level. Estimation of number of graduates. Distribution of labor force & participation rates to the number of graduates. Estimation of occupational supply based on the labor supply by education level. While developing a MPP if the planner is too optimistic about labor productivity, his forecasting may fall short of actual labor demand & labor force participation rate can increase the actual supply of labor. So it is very important to maintain a balance in between demand for & supply of man power. Sometimes due to poor data quality it then tends to use an ad hoc adjustment mechanism which is helpful to revise one or more of the key assumptions. RRA is also known as cost-benefit analysis of human capital. It is applied to decide the aggregate investment requirement for different skill development. Cost & earnings of an individual over his productive life cycle is computed first & then their discounted value is estimated to assess the rate of return.

1. MRA
RRA

2. MRA (MP Requirement Approach)
 MRA has been developed by Youdi in 1985. It is one of
the dominant model of MPP.
 It establishes linear relationship between manpower
category in different industry groups & their output.
 Example – This model is used by our country for the
educational planning at the national level.
 This model consists of 3 steps. These are
(a) Assessing the demand for manpower,
(b)Assessing the supply of manpower,
( c)Balancing the supply & demand.

3. DEMAND SIDE OF MP MODEL
Demand side consists of some basic aspects such as –
 Estimation of future level of GDP.
 Estimation of distribution of output by economic
sectors.
 Estimation of labor productivity by economic sector.
 Estimation of occupational structure of labor force
within economic sectors.
 Estimation of educational structure of the labor force
in given occupations within economic sectors over
time.

4. SUPPLY SIDE OF MP MODEL
 Estimation of population & categorization on the
basis of age, gender & educational level.
 Estimation of number of graduates.
 Distribution of labor force & participation rates to the
number of graduates.
 Estimation of occupational supply based on the labor
supply by education level.

5. BALANCING LABOR SUPPLY TO
DEMAND
 While developing a MPP if the planner is too
optimistic about labor productivity, his forecasting
may fall short of actual labor demand & labor force
participation rate can increase the actual supply of
labor.
 So it is very important to maintain a balance in
between demand for & supply of man power.
 Sometimes due to poor data quality it then tends to
use an ad hoc adjustment mechanism which is helpful
to revise one or more of the key assumptions.

6. RATE OF RETURN APPROACH
(RRA)
 RRA is also known as cost-benefit analysis of human
capital.
 It is applied to decide the aggregate investment
requirement for different skill development.
 Cost & earnings of an individual over his productive
life cycle is computed first & then their discounted
value is estimated to assess the rate of return.