A Amarender Reddy, profile picture
Uploaded byA Amarender Reddy
PDF, PPTX2,852 views

Rural labour markets in india

This document summarizes a presentation on rural labour markets in India. Key findings include: - Non-farm sectors are now driving growth in rural areas, replacing agriculture. - Wage rates and productivity are increasing even in rural areas but inequality remains. - Occupational mobility has increased over time, with a shift away from agriculture and towards non-farm work. - Education levels impact occupation choice and wages earned.

Embed presentation

Download as PDF, PPTX
Rural Labour Markets in India A Amarender Reddy ICRISAT a.amarenderreddy@cgiar.org Anugu.amarender.reddy@gmail.com
Outline of the presentation  Objectives of the study  Key findings of the project on rural labour dynamics at ICRISAT  Synthesis of three paper From longitudinal data from 1975 to 2012 In depth study for the year 2010 Trends in rural wage rates across states from 1995 to 2011  Conclusions and Policy prescriptions
Objectives and Methods  The study used the data ofVillage Dynamic Studies in South Asia(VDSA),and National Sample Survey Organisation (NSSO) and also wage data of labour buero  The spatial and temporal structural changes in the labour force and employment structure in India and Bangladesh.  Trends in Real wage rates  Factors determining the labour productivity (Modified Mincer Equation) and workers occupational choice (Multinomial Logit Model) will be assessed.
Future labour markets  Structural transformation in GDP is faster, but labour markets are slow  Until early 1980s agriculture is the driving force  From 1990s non-farm sector is driving growth  Increasing real wage rates even in rural areas  Higher productivity/wage differentials: rural-urban, farm- nonfarm; men-women declining  Growing income inequality- high social costs  Education and other institutions are increasing intergenerational inequality?  Bottom 20-30% of rural population is critical, mostly agricultural labourer  Increasing productivity in farm sector  Liberalisation policies for RNF/informal sector  Framers, agricultural labourer interest groups
Driving forces in rural labour markets Skillskill productivity
0 1 2 3 4 5 6 7 0 10 20 30 40 50 60 70 80 1973 1977 1983 1988 1993 1999 2004 2009 2012 Labourproductivity(non-agril/agril) Shareoflabour(%) MacroTrends in GDP and labour productivity share of non-agricultural labour share of agril. Labour Labour productivity gap between agril and non-agril
86 86 71 58 14 14 29 42 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1975 1984 2004 2010 %oftotalmaleworkers Farm and non-farm employment (%) inVDSA villages farm non-farm
Cultivators in 1975 Shift to agriculture sector Shift to non-agriculture Year Cultivators Livestock Agricultural Labourer Attached labourer Non- farm labour Caste occupatio n Business Salaried Others Total 1975 100 100 1984 77 6 5 2 1 2 0 5 1 100 2004 59 3 10 3 1 1 5 17 3 100 2010 44 6 9 1 8 2 11 15 4 100 Casual labourer in agriculture in 1975 Shift to agriculture sector Shift to non-agriculture Cultivators Livestock Agricultural Labourer Attached labourer Non- farm labour Caste occupatio n Business Salaried Others Total 1975 0 0 100 0 0 0 0 0 0 100 1984 13 5 70 6 3 3 1 0 0 100 2004 46 8 20 2 4 0 4 12 4 100 2010 32 16 18 4 14 0 7 9 2 100 Occupational Mobility Matrix (% of male workers) for whose occupation is cultivation and agricultural labourer in 1975 (males)
Year 1975 Year 2010 Occupational structure OBC ST SC Others Total OBC ST SC Others Total Males Agriculture (I) 92 94 90 88 91 76 69 53 85 74 Cultivation 45 47 19 59 44 48 47 16 56 47 Livestock 14 18 7 16 14 6 9 5 5 7 Agricultural labourer 33 29 64 13 33 22 13 32 24 20 Non-agriculture (II) 8 6 10 12 9 24 31 47 15 26 Non-agricultural labourer 0 0 1 1 0 17 12 37 15 16 Salaried 2 5 5 6 3 6 3 11 0 4 Business 1 1 2 3 2 1 1 0 0 1 Others 4 0 2 2 3 1 15 0 0 6 Total (III) 100 100 100 100 100 100 100 100 100 100 Females Agriculture (I) 100 84 100 100 93 76 72 75 71 74 Cultivation 49 38 0 8 35 47 48 24 55 46 Livestock 9 0 0 0 3 2 4 3 3 3 Agricultural labourer 42 46 100 92 55 27 20 48 13 25 Non-agriculture (II) 0 16 0 0 7 24 28 25 29 26 Non-agricultural labourer 0 0 0 0 0 1 1 2 0 1 Salaried 0 0 0 0 0 8 16 12 15 11 Business 0 4 0 0 2 4 4 1 9 5 Others 0 12 0 0 5 11 6 10 5 9 Total (III) 100 100 100 100 100 100 100 100 100 100 Notes: OBC: Other Backward Caste; SC: Scheduled Caste; ST: Scheduled Tribes Major occupation of workers (% of total workers) by Social status
Major Occupation Agricultur al labor Attached laborer Cultivation Domestic work Livestock rearing Nonfarm laborer Other traditional Others All Forward 1975 0 0 100 0 0 0 0 0 100 1984 0 0 100 0 0 0 0 0 100 1989 8 0 84 0 0 0 8 0 100 2010 4 0 83 0 0 0 0 13 100 OBC 1975 22 3 44 6 6 0 19 0 100 1984 19 3 46 5 3 0 24 0 100 1989 17 2 62 2 9 2 6 0 100 2010 41 0 45 0 2 2 7 3 100 SC 1975 46 31 23 0 0 0 0 0 100 1984 54 31 15 0 0 0 0 0 100 1989 29 14 57 0 0 0 0 0 100 2010 72 0 13 0 0 15 0 0 100 Major occupation of workers by Social status (two villages of AP)
Major occupation of workers (Male in %) by education 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Illiterate readandwrite uptoprimary uptomiddle highschool diploma graduate All primary middle highschool inter diploma graduation postgraduation Total 1975 2010 all others RFS Farm labour Farming
Female work structure by education level 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Illiterate readandwrite uptoprimary uptomiddle highschool graduate All illiterate primary middle highschool inter diploma graduation postgraduation Total 1975 2010 Others Farming Farm labor
0 50 100 150 200 250 300 illiterate primary middle high school 10+2 degree and above Illiterate Primary Middle High school 10+2 degree and above Female Male Work days (days/year) in 2010 Who is getting how many days of employment
Major occupation of workers (%) by Social status (1975-2010) 0 5 10 15 20 25 30 35 40 45 1975 2010 1975 2010 1975 2010 farming agricultural labourer salaried job Males BC ST/SC Others 0 5 10 15 20 25 30 35 40 1975 2010 1975 2010 1975 2010 farming agricultural labourer salaried job Female BC ST/SC Others
Credit delivery still land is major collateral? 0 10 20 30 40 50 60 70 80 Formal sources Informal sources Formal sources Informal sources Borrowers (%) Multiple borrowers (%) Social group Others OBC ST SC 0 10 20 30 40 50 60 70 80 Formal sources Informal sources Formal sources Informal sources Borrowers (%) Multiple borrowers (%) Land class landless small medium large
Work days excluding domestic work 0 50 100 150 200 250 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 2006 2008 2009 2010 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 2006 2008 2009 2010 female male Standard work days per year paid days Days in Economic Activity (including own farm)
Work days including domestic work 0 50 100 150 200 250 300 1975 1977 1979 1981 1983 2006 2009 1976 1978 1980 1982 1984 2008 2010 female male work days per year
Paid work and wage rates, 2010 0 50 100 150 200 250 Male Female Male Female Farm Non-farm Non-farm sector even lopsided educational policy is gender biased Paid work (Days) Wages rate (Rs/day)
0 50 100 150 200 250 300 Un-irrigated Irrigated Un-irrigated Irrigated Female Male Self-employment days (days) and wage rates (Rs/day), 2010 self-employment Wage rates
0 50 100 150 200 250 300 350 400 Illiterate Primary Middle High Inter Higheducated Illiterate Primary Middle High Inter Higheducated Female Male Education level by paid work (days) and wage rates (Rs/day) in 2010 Paid work Wage rates
0 20 40 60 80 100 120 140 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1989 2005 2006 2007 2008 2009 2010 Real wages in farm sector (1986 prices) (Rs/day for male and females; Rs/pair days for bullock labour; Rs/hour of tractor work) Bullock Female Male Tractor
0 5 10 15 20 25 30 35 40 2005 2006 2007 2008 2009 2010 wagerate(Rs/day) Rural non-farm sector wage rates in constant prices (Rs/day) Female Male
Urban migration of male population in Andhra Pradesh
50 100 150 200 250 300 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Rs/day All India Real wage Rates (at constant prices of 2011) Mason Carpenter Tractor Driver Ploughing Sowing Harvesting Unskilled Labourers
100 150 200 250 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 slack peak Seasonal real wage rates (Rs/day) at 2011 prices Mason Carpenter Tractor Driver Ploughing Harvesting Sowing Unskilled Labourers
Work type Mean 2012 (Rs/day) Annual growth rates Slack Peak 2001-07 2008-12 2001-07 2008-12 Mason(construction) 269 -1.3 4.5 -0.9 5.4 Carpenter 243 -0.9 4.5 -0.8 5.5 Well digging 231 -0.4 8.5 -0.7 10.3 Tractor Driver 194 -0.5 5.6 -0.4 5.9 Blacksmith 186 -1.7 4.9 -1.4 6.2 Ploughing 184 -1.4 6.1 -1.2 7.1 Sowing 163 -1.6 6.5 -0.7 7.4 Cane crushing 162 1.5 6.3 0.5 8.2 Harvesting 161 -0.5 7.7 0.2 8.3 Unskilled Laborers 158 -0.9 7.8 -0.5 7.6 Threshing 158 -1.3 8.8 -0.2 7.3 Transplanting 151 0.2 7.2 0.4 7.2 Winnowing 149 0.4 6.8 0.8 7.4 Picking 148 -0.3 8.1 -0.7 7.2 Weeding 145 -0.1 6.9 0.1 7.2 Cobbler 131 -1.4 3.9 -1.1 5.2 Sweeper 112 -1.9 5.7 -1.7 6.2 Herdsman 101 -2.3 8.0 -2.2 8.4 ACGR of real wage rates (%)
Year Mason Carpenter Tractor Driver Ploughing Sowing Harvesting Unskilled Laborers High wage rate states Tamil Nadu (P) 7.8 7.8 7.1 6.4 6.9 7.8 7.1 Tamil Nadu(S) 6.7 6.3 6.2 5.4 5.8 7.1 6.6 Andhra Pradesh(P) 5.7 5.7 6.9 9.6 9.4 8.7 8.2 Andhra Pradesh(S) 5.6 5.9 5.5 10.2 7.7 9.0 8.4 Haryana(P) 1.6 3.3 3.7 6.3 4.8 3.3 5.0 Haryana(S) 1.4 3.4 3.0 4.3 4.1 3.5 5.3 Punjab(P) 2.5 2.3 7.3 4.8 4.7 7.3 6.0 Punjab(S) 1.3 1.5 5.5 4.5 5.6 5.5 4.6 Medium wage rate states Karnataka(P) 2.5 3.2 3.4 8.2 6.9 7.8 6.2 Karnataka(S) 2.1 3.0 4.1 5.7 6.2 7.0 5.7 Maharashtra(P) 2.6 2.2 4.4 6.3 6.2 7.0 5.5 Maharashtra(S) 1.3 1.4 3.5 4.8 5.1 5.0 4.0 Rajasthan(P) 3.3 3.0 2.9 3.3 4.4 7.9 6.5 Rajasthan(S) 3.3 2.1 2.0 4.8 0.4 7.0 6.6 West Bengal(P) 1.2 0.7 1.0 1.8 4.1 4.0 4.3 West Bengal(S) 0.3 -0.3 0.8 2.5 4.0 4.1 3.9 Gujarat(P) 0.3 -1.5 -1.5 0.5 -0.4 0.8 1.4 Gujarat(S) -1.0 -2.5 -1.7 -0.3 -1.3 -0.3 0.6 Low wage rates states Uttar Pradesh(P) 2.9 1.9 3.7 4.1 4.3 4.1 5.2 Uttar Pradesh(S) 1.7 0.6 2.9 2.1 3.4 3.2 4.0 Bihar(P) 1.9 1.3 2.0 4.5 4.1 3.1 4.6 Bihar(S) 1.0 0.3 1.7 4.1 2.8 2.1 3.7 Orissa(P) 1.6 0.8 -0.9 6.8 5.3 5.8 6.8 Orissa(S) 0.7 -0.1 -1.2 6.6 7.0 6.7 6.5 MP(P) -0.6 -0.5 3.3 3.8 4.2 5.2 4.1 MP(S) -4.8 -1.0 1.8 2.2 2.2 2.5 3.6 All India(P) 2.5 2.3 3.4 4.5 4.1 5.0 5.2 All India(S) 1.8 1.6 2.7 3.8 3.4 4.0 4.7 Annual compound growth rates of real wage rates (2005-12),
State Period AP Punjab Haryana TN All India Unskilled P-I 3.5 5.0 0.7 2.6 3.6 P-II 7.1 7.4 5.8 5.8 5.1 Over all 2.9 4.3 1.7 2.9 2.9 Ploughing P-I 2.5 1.0 2.1 5.1 1.3 P-II 10.3 6.3 6.4 6.5 4.7 Over all 4.7 2.7 3.0 3.0 1.7 Harvesting P-I 3.0 2.0 2.4 1.3 1.0 P-II 10.3 8.1 4.1 7.2 5.1 Over all 5.2 3.1 2.6 2.5 1.8 Sowing P-I 5.1 3.1 1.8 1.7 2.1 P-II 4.2 6.8 4.9 6.9 4.3 Over all 2.2 2.8 2.7 2.3 1.9 Tractor P-I 3.2 3.9 1.9 2.5 3.7 P-II 2.5 4.0 6.6 7.5 4.5 Over all 2.2 3.4 1.9 3.0 3.0 Mason P-I 1.2 0.1 2.5 4.6 2.0 P-II 2.1 2.4 3.5 7.8 2.7 Over all 1.5 0.2 1.4 4.0 1.4 Carpenter P-I -0.5 4.3 -0.2 4.5 4.2 P-II 4.0 2.8 2.4 7.6 -1.4 Over all 0.8 1.5 0.2 3.9 0.8 ACGR of wage rates in high real wage rate states (developed states)
State Period Bihar Orissa MP UP Unskilled P-I 5.4 4.5 2.4 4.1 P-II 4.7 5.3 4.3 1.6 Over all 3.9 3.1 1.6 1.5 Harvesting P-I 2.6 2.2 2.1 3.5 P-II 4.4 7.2 0.7 4.7 Over all 2.2 3.2 0.9 2.3 Sowing P-I 4.2 5.7 4.7 4.4 P-II 4.5 4.0 3.5 -0.2 Over all 2.8 3.5 2.1 1.8 Tractor P-I 3.0 2.1 4.5 2.3 P-II 4.5 3.7 -0.6 3.0 Over all 2.8 2.4 1.8 1.0 ploughing P-I 5.3 4.1 3.7 4.0 P-II 4.8 7.0 3.2 3.7 Over all 4.2 3.6 2.1 2.7 Mason P-I 4.8 4.2 1.5 3.8 P-II 2.0 1.6 -0.7 1.3 Over all 2.8 2.0 0.2 1.8 Carpenter P-I 5.4 4.0 2.3 3.7 P-II 3.5 6.3 -0.2 0.8 Over all 2.5 3.2 0.6 1.7 ACGR in low real wage rate (less developed) states
Ratio of male to female wage rates Farm and non-farm sector 0.0 0.5 1.0 1.5 2.0 2.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ratio farm work non-farm work Linear (farm work) Linear (non-farm work) Declining gender wage gap
Ratio of wage rates(non-farm to farm) 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ratio Male Female Linear (Male) Linear (Female)
0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ratio Ratio of wage rates of mason to ploughing Uttar Pradesh Gujarat Rajasthan Bihar Orissa Punjab Madhya Pradesh Maharashtra All India Haryana Karnataka Tamil Nadu Andhra Pradesh West Bengal
-60 -40 -20 0 20 40 60 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 The coefficients for the year dummies on wages ploughing harvesting unskilled sowing mason tractor carpenter
0 2 4 6 8 10 12 14 16 18 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 2005 2006 2008 2009 2010 1979 1980 1981 1982 1983 1984 2005 2006 2008 2009 2010 female male Ratio:toptobottom Disparities in wage rates 9th percentile to 2nd percentile 10th percentile to 1st percentile
Work type /item Female Male % over female (I) Hours with economic activities 23.1 36.2 56.7 Paid work 12.3 20.8 69 Own farm 5.2 8.5 62 Own livestock 5.1 6.3 24 Other own 0.5 0.6 33 (II)Hours with non-economic activities 28.1 8.8 -68.7 Domestic duties 26.3 6.5 -75 Seriously ill 0.9 0.6 -33 Unemployed 0.9 1.7 83 Hours with economic and non-economic activities (I+II) 51.2 45.0 -12.1 Wage income ( /year) 7920 27000 241 Wage rate ( /8 hours) 99 200 102 Imputed income , if income of non-monetary work days are imputed with on-going wage rates for male and female respectively 32967 58400 77 Imputed income , if income of non-monetary work days of both men and women at the on-going wage rates of female ( 99/8 hours) 32967 42551 29.1 Average level of education 5 8 Average hours/week of female and male (2010)
Salient features  Structural transformation in rural economy  Raising real wage rates  Divergence in wage rates  Stagnation in labour productivity in agriculture  Shift in engines of growth  Increase in rural non-farm sector and diversity of income
Long run trends..  Most of the workers are spent more days in self-employment in agriculture with very few days in paid work. Both men and women have more leisure time during the 1970s compared to early 2000s. However, from 2001 onwards, there has been an increase in non-farm employment opportunities in both self-employment and also paid work mostly for rural male, but most of the rural women remained in farm sector. Results also shows that even though education improves chances of getting higher remunerative employment, still rural labour markets are segmented based on social groups to 2 some extent.The high unemployment among educated youth indicates that the skills acquired by the educational system are not meeting the needs of the rural economy. However, many parents are investing heavily in children’s education with the expectation of getting higher paid urban jobs. Over the period, gender and caste differences in wage rates decreased slightly, but are not eliminated wholly.
Long run trends.. Men work days are more than women work days per year, however If we take domestic work into consideration women work more days than men.Attached labourer are almost eliminated with the implementation of bonded labour abolition act and most of them shifted to different occupations including cultivation or casual agricultural labourer or took up petty businesses.There is significant increase in farm mechanisation in recent years due to scarcity of labour and higher wage rates.The results also show that the real wage rates started increasing much before the introduction of a major employment guarantee program (MGNREGA) and mostly driven by increased non- farm employment opportunities, rural-urban linkages, migration and increased agricultural productivity.
Conclusions  Overall, men reported 36.2 hours per week compared to only 23.1 hours per week in economic activities.  If we consider both economic and non-economic activities, participation of women increased to 51.2 hours compared to only 45.0 for men as women spent more hours in attending domestic duties.  However, men work more hours in paid work (20.8 hours) than women (12.3 hours).  The gap in income earned from monetary activities between men and women is much higher. But, if we impute the value of the domestic duties of both men and women equally, the gap in incomes between men and women drastically reduced from 241% to just 29%.  Illiterate women loaded with more hours of paid-work as well as domestic work. Labor markets are segmented based on social background to some extent (after discounting for human and physical capital) and supports segmented labor market theory.
Conclusions Cont..  It is interesting to see that the hours worked in economic activities increases with ownership of land and assets rather than education in rural India.  Level of education and experience have little influence on choice of occupation and quality of employment of individuals both men and women, as still rural employment in rural India is mostly confined to the technologically backward sectors even in non-farm sector and business like petty business, general stores, toddy tapping, repair shops, transport and construction works which require very little skill levels and education levels.  However, the quality of work improves significantly for only few higher educated men and women in service sector employment like teachers, nurses, record keeper, health workers; most of the educated youth remain unemployed. Especially most of the educated women engaged in domestic duties due to lack of commensurate employment opportunities in rural areas. Even though in the villages returns to education is low or non- significant, people are investing heavily in educating their children with the expectation of getting urban employment mostly as engineer or doctor or even a software engineer in America etc.  Most of the parents persuade their children to go to urban centres as soon as they completed the higher education with expectation of huge remittance money.
THIS CONFIRMSTHAT AT LEAST DEVELOPED STATES IN INDIA CROSSED THE LEWISTURNING POINT. THE ACCELERATION OF REAL WAGES EVEN IN SLACK SEASON INDICATESTHATTHE ERA OF LABOR SHORTAGE IS STARTED IN RURAL AREAS ESPECIALLY IN DEVELOPED STATES LIKETAMIL NADU, HARYANA, PUNJAB AND ANDHRA PRADESH,WHICH NEEDSTO BETACKLEDTHROUGH LABOR SAVING TECHNOLOGY AND WIDE SCALE FARM MECHANISATION. ONTHE OTHER HAND IT APPEARSTHAT THE UNDERDEVELOPED STATES LIKE MADHYA PRADESH, UTTAR PRADESH AND BIHAR ARE NOT REACHEDTHE LTP AND NEEDSTO DEVELOP POLICIESTO INCREASE PRODUCTIVITY OF RURAL LABOR INTHESE BACKWARD STATES. Wage rates…..
Rural society in India is traditionally highly segmented based on caste, gender and traditional occupations, however, they are slowly reducing their influence on labor market outcomes as they are not significant in choice of employment or hours worked, they are replaced by the ownership of land and assets and owning high productive land (like irrigated area) in influencing the labor market outcomes. Demand for some caste occupations like traditional toddy-tapping (making locally made alcohol), cleaning of cloths, etc is increasing in near-by towns which can be captured by rural men and women with middle level of education. Some of the policy prescriptions from the study are • Enhancing the ownership of assets like land, irrigated area through providing loans which will increase hours worked in economic activities •Imbibing savings habit which generally increase labor force participation rate, •Enhancing quality education in rural areas beyond the higher-secondary to take advantage of growing employment in service sector and new emerging occupations like repair of mobiles, electric motors computer centres •Imparting skill development in both caste occupations and also in modern sectors and •Balanced development of both urban and rural areas through promotion of small towns. Policy Options..
Rural labour markets in india

More Related Content

PPTX
Inventory management
byKuldeep Uttam
 
PPTX
Role of Business Economists, objectives
byCarrel Pereira
 
PPTX
3 micro-statics, comparative & dynamic
byPrem Raj Bhatta
 
PPTX
Basic Economic Problems
bySidneynunoo
 
PDF
11- Supply chain dynamics.pdf
byAnanyaSharma724578
 
PPSX
Baumol's model of demand for money
byPrabha Panth
 
PPTX
Facility layout
byNIPER hyderabad
 
PPTX
5. managerial economics Supply Analysis.pptx
byNabeelAli89
 
Inventory management
byKuldeep Uttam
 
Role of Business Economists, objectives
byCarrel Pereira
 
3 micro-statics, comparative & dynamic
byPrem Raj Bhatta
 
Basic Economic Problems
bySidneynunoo
 
11- Supply chain dynamics.pdf
byAnanyaSharma724578
 
Baumol's model of demand for money
byPrabha Panth
 
Facility layout
byNIPER hyderabad
 
5. managerial economics Supply Analysis.pptx
byNabeelAli89
 

What's hot

PPT
Jit & Lean Operations
bykahogan62
 
PPTX
Elasticity of demand
byAmiteshYadav7
 
PPTX
The EOQ Model
bysmsajl
 
PPTX
Introduction to taxation
byChristian Gravador
 
PPTX
HO THEORY MODERN THEORY OF INTERNATIONAL TRADE
byBhuvanesvari srinivasan
 
PPTX
Leontief Paradox.pptx
bySuzOn3
 
PPTX
Solving Basic Economic Problems
byManish Purani
 
PPTX
Classical
byU6410
 
PPT
Demand Elasticity 97 2003
byharshalvyas
 
PPTX
LEARNING CURVE
byAhmad Tariq Bhatti
 
PPTX
Forms of market
byManish Purani
 
PDF
Waiting line mgmt
byDr. Vaibhav Agarwal
 
PPTX
Trend adjusted exponential smoothing forecasting metho ds
byKiran Hanjar
 
PPTX
Economics giffen GOODS
bySmeet Jain
 
PPT
Location decision
bySumit Malhotra
 
PPT
Elasticity Of Demand And Supply
bymandalina landy
 
PPT
Layout strategies
byshilpijain23
 
PPTX
6.1 consumption function
byRavi Prajapati
 
PPTX
CHARACTERISTICS, ADVANTAGES AND DISADVANTAGES OF ECONOMIC SYSTEMS
byDINEO NKAWANE
 
PPT
Behaviouralism
byfayazuddinrajper
 
Jit & Lean Operations
bykahogan62
 
Elasticity of demand
byAmiteshYadav7
 
The EOQ Model
bysmsajl
 
Introduction to taxation
byChristian Gravador
 
HO THEORY MODERN THEORY OF INTERNATIONAL TRADE
byBhuvanesvari srinivasan
 
Leontief Paradox.pptx
bySuzOn3
 
Solving Basic Economic Problems
byManish Purani
 
Classical
byU6410
 
Demand Elasticity 97 2003
byharshalvyas
 
LEARNING CURVE
byAhmad Tariq Bhatti
 
Forms of market
byManish Purani
 
Waiting line mgmt
byDr. Vaibhav Agarwal
 
Trend adjusted exponential smoothing forecasting metho ds
byKiran Hanjar
 
Economics giffen GOODS
bySmeet Jain
 
Location decision
bySumit Malhotra
 
Elasticity Of Demand And Supply
bymandalina landy
 
Layout strategies
byshilpijain23
 
6.1 consumption function
byRavi Prajapati
 
CHARACTERISTICS, ADVANTAGES AND DISADVANTAGES OF ECONOMIC SYSTEMS
byDINEO NKAWANE
 
Behaviouralism
byfayazuddinrajper
 

Viewers also liked

PPT
Ifpri pulses policies
byA Amarender Reddy
 
PPTX
Time use in economic and non economic activities by men and women in a few vi...
byA Amarender Reddy
 
PDF
Introduction to money markets
byShantha Yahanpath, MSc (UK), PhD (Berlin), DipFP
 
PPT
European union - The Euro Debate
bymattbentley34
 
PPT
International economic ch20
byJudianto Nugroho
 
PPT
88060433 international-money-market-instruments
byGodrej & Boyce
 
PPTX
HISTORY OF LABOUR MARKET SEGMENTATIN
byAritra Chakrabarty
 
PPTX
Trends and patterns of Savings (Household Savings) in India
byAkash Singh
 
PPTX
Distinct features of indian society
byAnurag Verma
 
PPTX
Exchange rate theories
byTanuj Poddar
 
PPTX
Resource mobilisation in india
byHigher Education Department, Haryana
 
PPT
The Foreign Exchange Market
byRobin Kapoor
 
PPTX
Savings vs investment
byRahul saxena
 
PPT
Module 1 introduction to labour markets & labour market institution final
byJinha
 
PPTX
Consumption, Saving and Investment
byFahad Ur Rehman Khan
 
PPT
Concepts of Taxation
byGregar Donaven Valdehueza
 
PPT
Chapter 13_The Foreign Exchange Market
byRusman Mukhlis
 
Ifpri pulses policies
byA Amarender Reddy
 
Time use in economic and non economic activities by men and women in a few vi...
byA Amarender Reddy
 
Introduction to money markets
byShantha Yahanpath, MSc (UK), PhD (Berlin), DipFP
 
European union - The Euro Debate
bymattbentley34
 
International economic ch20
byJudianto Nugroho
 
88060433 international-money-market-instruments
byGodrej & Boyce
 
HISTORY OF LABOUR MARKET SEGMENTATIN
byAritra Chakrabarty
 
Trends and patterns of Savings (Household Savings) in India
byAkash Singh
 
Distinct features of indian society
byAnurag Verma
 
Exchange rate theories
byTanuj Poddar
 
Resource mobilisation in india
byHigher Education Department, Haryana
 
The Foreign Exchange Market
byRobin Kapoor
 
Savings vs investment
byRahul saxena
 
Module 1 introduction to labour markets & labour market institution final
byJinha
 
Consumption, Saving and Investment
byFahad Ur Rehman Khan
 
Concepts of Taxation
byGregar Donaven Valdehueza
 
Chapter 13_The Foreign Exchange Market
byRusman Mukhlis
 

Similar to Rural labour markets in india

PDF
Rural Labour Markets in India
byA Amarender Reddy
 
PPTX
Time use in economic and non-economic activities by gender
byA Amarender Reddy
 
PPTX
A Study of Agricultural Labour Markets in India
byFarnazSha2
 
PPTX
LABOUR SCARCITY AND FARM MECHANISATION
bypriyanka upreti
 
PPTX
Labour scarcity and farm mechanisation
byPriyanka Upreti
 
PDF
Agricultural Economics: Agricultural Labour.pdf
byDr.U.Ramesh, Ph.D. Uthandi
 
PPTX
Lewis dual sector model and its applicability to Indian agriculture
byAshok Taradale
 
PPTX
Agriculture Liveiihood in india
byKuldeep Ladani
 
PPT
Rural labour markets in India
byA Amarender Reddy
 
PDF
Changes in structure of labour participation and wage dynamics in Bihar
byICRISAT
 
PPTX
Labour scarcity in Indian agriculture an emerging challenge
bySurjeet Randhir Singh Dhaka
 
DOCX
Economics agriculture project
byMitali Shah
 
PDF
Labour Employment And Economic Growth In India K V Ramaswamy
bylufungnagui
 
PPTX
Employment (rural development rd)
byAbhishek Kumar
 
PDF
An analytical study on employment and indebtedness of rural households eviden...
byMarwadi University Rajkot
 
PDF
Notes employment,infrastructure,sustainable development & comparative study
byJP INTERNATIONAL SCHOOL,KANKER
 
PDF
CBSE INDIAN ECONOMICS Notes:employment,infrastructure,sustainable development...
byJP INTERNATIONAL SCHOOL,KANKER
 
PPTX
Labour force
byMuruganK52
 
PDF
Labour in Indian Agriculture: A Growing Challenge
byFederation of Indian Chambers of Commerce & Industry (FICCI)
 
PDF
Reports Rural Wages LB.pdf
byJayantaBhunia1
 
Rural Labour Markets in India
byA Amarender Reddy
 
Time use in economic and non-economic activities by gender
byA Amarender Reddy
 
A Study of Agricultural Labour Markets in India
byFarnazSha2
 
LABOUR SCARCITY AND FARM MECHANISATION
bypriyanka upreti
 
Labour scarcity and farm mechanisation
byPriyanka Upreti
 
Agricultural Economics: Agricultural Labour.pdf
byDr.U.Ramesh, Ph.D. Uthandi
 
Lewis dual sector model and its applicability to Indian agriculture
byAshok Taradale
 
Agriculture Liveiihood in india
byKuldeep Ladani
 
Rural labour markets in India
byA Amarender Reddy
 
Changes in structure of labour participation and wage dynamics in Bihar
byICRISAT
 
Labour scarcity in Indian agriculture an emerging challenge
bySurjeet Randhir Singh Dhaka
 
Economics agriculture project
byMitali Shah
 
Labour Employment And Economic Growth In India K V Ramaswamy
bylufungnagui
 
Employment (rural development rd)
byAbhishek Kumar
 
An analytical study on employment and indebtedness of rural households eviden...
byMarwadi University Rajkot
 
Notes employment,infrastructure,sustainable development & comparative study
byJP INTERNATIONAL SCHOOL,KANKER
 
CBSE INDIAN ECONOMICS Notes:employment,infrastructure,sustainable development...
byJP INTERNATIONAL SCHOOL,KANKER
 
Labour force
byMuruganK52
 
Labour in Indian Agriculture: A Growing Challenge
byFederation of Indian Chambers of Commerce & Industry (FICCI)
 
Reports Rural Wages LB.pdf
byJayantaBhunia1
 

More from A Amarender Reddy

PPTX
Agricultural Extension Reforms
byA Amarender Reddy
 
PPTX
Agricultural Reforms in India @75
byA Amarender Reddy
 
PPTX
Contribution of Smallholder in Value Chain Development in Drylands
byA Amarender Reddy
 
PPTX
Crop Diversification: Concepts, scope, opportunities
byA Amarender Reddy
 
PPT
Crop diversification: policies and incentives
byA Amarender Reddy
 
PDF
Assuring farmers income in the context of New Farm Laws in India
byA Amarender Reddy
 
PDF
Strategies for development of livelihoods on drylands converted (1)
byA Amarender Reddy
 
PPTX
Agrarian economy of telangana
byA Amarender Reddy
 
PDF
Policy issues in pulses in India
byA Amarender Reddy
 
PPTX
An Overview of Value Chain Approach
byA Amarender Reddy
 
PPT
Isae aurangabad reddy1
byA Amarender Reddy
 
Agricultural Extension Reforms
byA Amarender Reddy
 
Agricultural Reforms in India @75
byA Amarender Reddy
 
Contribution of Smallholder in Value Chain Development in Drylands
byA Amarender Reddy
 
Crop Diversification: Concepts, scope, opportunities
byA Amarender Reddy
 
Crop diversification: policies and incentives
byA Amarender Reddy
 
Assuring farmers income in the context of New Farm Laws in India
byA Amarender Reddy
 
Strategies for development of livelihoods on drylands converted (1)
byA Amarender Reddy
 
Agrarian economy of telangana
byA Amarender Reddy
 
Policy issues in pulses in India
byA Amarender Reddy
 
An Overview of Value Chain Approach
byA Amarender Reddy
 
Isae aurangabad reddy1
byA Amarender Reddy
 

Recently uploaded

PPTX
Salesforce Spring 26` Release Key Features.pptx
byMehediHasan939830
 
PPTX
CHAPTER NO. 05 BIOLOGICAL SOURCE,CHEMICAL CONSTITUENTS AND THERAPEUTIC EFFICA...
byGanu Gavade
 
PPTX
Details Study of Joints (articulation).pptx
byAshish Umale
 
PDF
Plant Respiration.pdf Remedial Biology Unit-5 B.Pharm 1st Year
bySaurabh Dubey
 
PDF
Digital_Empathy_Toolkit_Netiquette_and_Responsible_Communication
byNidhi Pandya
 
PPTX
Haemolytic_Anaemia_UG_MBBS_Haemolysis_haemolysis
byDibyajyoti Prusty
 
PDF
• Reinforcing the Human Firewall: Moving From Awareness to Applied Skill
byAdityarajsinh Gohil
 
PPTX
YSPH VMOC Special Report - Measles - The Americas 12-28 2025 .pptx
byYale School of Public Health - The Virtual Medical Operations Center (VMOC)
 
PPTX
What is Epiphany? A Visual introduction to this amazing liturgical season
bySteve Thomason
 
PPTX
CHAPTER 4. Size Reduction, Size Separation, Mixing, Filtration, Drying, Extra...
bySharibJamal
 
PPTX
What are the Custom lot_serial number in Odoo 19
byCeline George
 
PPTX
Aplastic_Anaemia_PA17.1_Presentation.pptx
byDibyajyoti Prusty
 
PPTX
4. Nursery raising of vegetable crops.pptx
byUmeshTimilsina1
 
PPTX
Cultivation Practice of Chilli and sweet Pepper.pptx
byUmeshTimilsina1
 
PDF
Cut off for Asst Professor Recruitment by HPSC i.e. Haryana Public Service Co...
byRajesh Verma
 
PDF
Gaming Quiz 2025- 27th October 2025, Quiz Club NITW
byQuiz Club NITW
 
PPTX
Cultivation Practice of Tomato in Nepal.pptx
byUmeshTimilsina1
 
PPTX
Cultivation practice of Root vegetables.pptx
byUmeshTimilsina1
 
PDF
Renewable Energy Resources Unit 2 Easy notes (EduShine Classes).pdf
byaaquib913
 
PDF
GDGoC TAE Orientation presentation for WOW-Verse hackathon
bymayurpatiltae
 
Salesforce Spring 26` Release Key Features.pptx
byMehediHasan939830
 
CHAPTER NO. 05 BIOLOGICAL SOURCE,CHEMICAL CONSTITUENTS AND THERAPEUTIC EFFICA...
byGanu Gavade
 
Details Study of Joints (articulation).pptx
byAshish Umale
 
Plant Respiration.pdf Remedial Biology Unit-5 B.Pharm 1st Year
bySaurabh Dubey
 
Digital_Empathy_Toolkit_Netiquette_and_Responsible_Communication
byNidhi Pandya
 
Haemolytic_Anaemia_UG_MBBS_Haemolysis_haemolysis
byDibyajyoti Prusty
 
• Reinforcing the Human Firewall: Moving From Awareness to Applied Skill
byAdityarajsinh Gohil
 
YSPH VMOC Special Report - Measles - The Americas 12-28 2025 .pptx
byYale School of Public Health - The Virtual Medical Operations Center (VMOC)
 
What is Epiphany? A Visual introduction to this amazing liturgical season
bySteve Thomason
 
CHAPTER 4. Size Reduction, Size Separation, Mixing, Filtration, Drying, Extra...
bySharibJamal
 
What are the Custom lot_serial number in Odoo 19
byCeline George
 
Aplastic_Anaemia_PA17.1_Presentation.pptx
byDibyajyoti Prusty
 
4. Nursery raising of vegetable crops.pptx
byUmeshTimilsina1
 
Cultivation Practice of Chilli and sweet Pepper.pptx
byUmeshTimilsina1
 
Cut off for Asst Professor Recruitment by HPSC i.e. Haryana Public Service Co...
byRajesh Verma
 
Gaming Quiz 2025- 27th October 2025, Quiz Club NITW
byQuiz Club NITW
 
Cultivation Practice of Tomato in Nepal.pptx
byUmeshTimilsina1
 
Cultivation practice of Root vegetables.pptx
byUmeshTimilsina1
 
Renewable Energy Resources Unit 2 Easy notes (EduShine Classes).pdf
byaaquib913
 
GDGoC TAE Orientation presentation for WOW-Verse hackathon
bymayurpatiltae
 

Rural labour markets in india

  • 1.
    Rural Labour Marketsin India A Amarender Reddy ICRISAT a.amarenderreddy@cgiar.org Anugu.amarender.reddy@gmail.com
  • 2.
    Outline of thepresentation  Objectives of the study  Key findings of the project on rural labour dynamics at ICRISAT  Synthesis of three paper From longitudinal data from 1975 to 2012 In depth study for the year 2010 Trends in rural wage rates across states from 1995 to 2011  Conclusions and Policy prescriptions
  • 3.
    Objectives and Methods The study used the data ofVillage Dynamic Studies in South Asia(VDSA),and National Sample Survey Organisation (NSSO) and also wage data of labour buero  The spatial and temporal structural changes in the labour force and employment structure in India and Bangladesh.  Trends in Real wage rates  Factors determining the labour productivity (Modified Mincer Equation) and workers occupational choice (Multinomial Logit Model) will be assessed.
  • 4.
    Future labour markets Structural transformation in GDP is faster, but labour markets are slow  Until early 1980s agriculture is the driving force  From 1990s non-farm sector is driving growth  Increasing real wage rates even in rural areas  Higher productivity/wage differentials: rural-urban, farm- nonfarm; men-women declining  Growing income inequality- high social costs  Education and other institutions are increasing intergenerational inequality?  Bottom 20-30% of rural population is critical, mostly agricultural labourer  Increasing productivity in farm sector  Liberalisation policies for RNF/informal sector  Framers, agricultural labourer interest groups
  • 5.
    Driving forces inrural labour markets Skillskill productivity
  • 6.
    0 1 2 3 4 5 6 7 0 10 20 30 40 50 60 70 80 1973 1977 19831988 1993 1999 2004 2009 2012 Labourproductivity(non-agril/agril) Shareoflabour(%) MacroTrends in GDP and labour productivity share of non-agricultural labour share of agril. Labour Labour productivity gap between agril and non-agril
  • 7.
    86 86 71 58 14 14 29 42 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 19751984 2004 2010 %oftotalmaleworkers Farm and non-farm employment (%) inVDSA villages farm non-farm
  • 10.
    Cultivators in 1975 Shiftto agriculture sector Shift to non-agriculture Year Cultivators Livestock Agricultural Labourer Attached labourer Non- farm labour Caste occupatio n Business Salaried Others Total 1975 100 100 1984 77 6 5 2 1 2 0 5 1 100 2004 59 3 10 3 1 1 5 17 3 100 2010 44 6 9 1 8 2 11 15 4 100 Casual labourer in agriculture in 1975 Shift to agriculture sector Shift to non-agriculture Cultivators Livestock Agricultural Labourer Attached labourer Non- farm labour Caste occupatio n Business Salaried Others Total 1975 0 0 100 0 0 0 0 0 0 100 1984 13 5 70 6 3 3 1 0 0 100 2004 46 8 20 2 4 0 4 12 4 100 2010 32 16 18 4 14 0 7 9 2 100 Occupational Mobility Matrix (% of male workers) for whose occupation is cultivation and agricultural labourer in 1975 (males)
  • 11.
    Year 1975 Year2010 Occupational structure OBC ST SC Others Total OBC ST SC Others Total Males Agriculture (I) 92 94 90 88 91 76 69 53 85 74 Cultivation 45 47 19 59 44 48 47 16 56 47 Livestock 14 18 7 16 14 6 9 5 5 7 Agricultural labourer 33 29 64 13 33 22 13 32 24 20 Non-agriculture (II) 8 6 10 12 9 24 31 47 15 26 Non-agricultural labourer 0 0 1 1 0 17 12 37 15 16 Salaried 2 5 5 6 3 6 3 11 0 4 Business 1 1 2 3 2 1 1 0 0 1 Others 4 0 2 2 3 1 15 0 0 6 Total (III) 100 100 100 100 100 100 100 100 100 100 Females Agriculture (I) 100 84 100 100 93 76 72 75 71 74 Cultivation 49 38 0 8 35 47 48 24 55 46 Livestock 9 0 0 0 3 2 4 3 3 3 Agricultural labourer 42 46 100 92 55 27 20 48 13 25 Non-agriculture (II) 0 16 0 0 7 24 28 25 29 26 Non-agricultural labourer 0 0 0 0 0 1 1 2 0 1 Salaried 0 0 0 0 0 8 16 12 15 11 Business 0 4 0 0 2 4 4 1 9 5 Others 0 12 0 0 5 11 6 10 5 9 Total (III) 100 100 100 100 100 100 100 100 100 100 Notes: OBC: Other Backward Caste; SC: Scheduled Caste; ST: Scheduled Tribes Major occupation of workers (% of total workers) by Social status
  • 12.
    Major Occupation Agricultur al labor Attached laborer Cultivation Domestic work Livestock rearing Nonfarm laborer Other traditionalOthers All Forward 1975 0 0 100 0 0 0 0 0 100 1984 0 0 100 0 0 0 0 0 100 1989 8 0 84 0 0 0 8 0 100 2010 4 0 83 0 0 0 0 13 100 OBC 1975 22 3 44 6 6 0 19 0 100 1984 19 3 46 5 3 0 24 0 100 1989 17 2 62 2 9 2 6 0 100 2010 41 0 45 0 2 2 7 3 100 SC 1975 46 31 23 0 0 0 0 0 100 1984 54 31 15 0 0 0 0 0 100 1989 29 14 57 0 0 0 0 0 100 2010 72 0 13 0 0 15 0 0 100 Major occupation of workers by Social status (two villages of AP)
  • 13.
    Major occupation ofworkers (Male in %) by education 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Illiterate readandwrite uptoprimary uptomiddle highschool diploma graduate All primary middle highschool inter diploma graduation postgraduation Total 1975 2010 all others RFS Farm labour Farming
  • 14.
    Female work structureby education level 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Illiterate readandwrite uptoprimary uptomiddle highschool graduate All illiterate primary middle highschool inter diploma graduation postgraduation Total 1975 2010 Others Farming Farm labor
  • 15.
    0 50 100 150 200 250 300 illiterate primary middlehigh school 10+2 degree and above Illiterate Primary Middle High school 10+2 degree and above Female Male Work days (days/year) in 2010 Who is getting how many days of employment
  • 16.
    Major occupation ofworkers (%) by Social status (1975-2010) 0 5 10 15 20 25 30 35 40 45 1975 2010 1975 2010 1975 2010 farming agricultural labourer salaried job Males BC ST/SC Others 0 5 10 15 20 25 30 35 40 1975 2010 1975 2010 1975 2010 farming agricultural labourer salaried job Female BC ST/SC Others
  • 17.
    Credit delivery stillland is major collateral? 0 10 20 30 40 50 60 70 80 Formal sources Informal sources Formal sources Informal sources Borrowers (%) Multiple borrowers (%) Social group Others OBC ST SC 0 10 20 30 40 50 60 70 80 Formal sources Informal sources Formal sources Informal sources Borrowers (%) Multiple borrowers (%) Land class landless small medium large
  • 18.
    Work days excludingdomestic work 0 50 100 150 200 250 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 2006 2008 2009 2010 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 2006 2008 2009 2010 female male Standard work days per year paid days Days in Economic Activity (including own farm)
  • 19.
    Work days includingdomestic work 0 50 100 150 200 250 300 1975 1977 1979 1981 1983 2006 2009 1976 1978 1980 1982 1984 2008 2010 female male work days per year
  • 20.
    Paid work andwage rates, 2010 0 50 100 150 200 250 Male Female Male Female Farm Non-farm Non-farm sector even lopsided educational policy is gender biased Paid work (Days) Wages rate (Rs/day)
  • 21.
    0 50 100 150 200 250 300 Un-irrigated Irrigated Un-irrigatedIrrigated Female Male Self-employment days (days) and wage rates (Rs/day), 2010 self-employment Wage rates
  • 22.
  • 23.
    0 20 40 60 80 100 120 140 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1989 2005 2006 2007 2008 2009 2010 Real wages infarm sector (1986 prices) (Rs/day for male and females; Rs/pair days for bullock labour; Rs/hour of tractor work) Bullock Female Male Tractor
  • 24.
    0 5 10 15 20 25 30 35 40 2005 2006 20072008 2009 2010 wagerate(Rs/day) Rural non-farm sector wage rates in constant prices (Rs/day) Female Male
  • 25.
    Urban migration ofmale population in Andhra Pradesh
  • 26.
    50 100 150 200 250 300 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Rs/day All India Realwage Rates (at constant prices of 2011) Mason Carpenter Tractor Driver Ploughing Sowing Harvesting Unskilled Labourers
  • 27.
    100 150 200 250 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 slack peak Seasonal realwage rates (Rs/day) at 2011 prices Mason Carpenter Tractor Driver Ploughing Harvesting Sowing Unskilled Labourers
  • 28.
    Work type Mean 2012 (Rs/day) Annualgrowth rates Slack Peak 2001-07 2008-12 2001-07 2008-12 Mason(construction) 269 -1.3 4.5 -0.9 5.4 Carpenter 243 -0.9 4.5 -0.8 5.5 Well digging 231 -0.4 8.5 -0.7 10.3 Tractor Driver 194 -0.5 5.6 -0.4 5.9 Blacksmith 186 -1.7 4.9 -1.4 6.2 Ploughing 184 -1.4 6.1 -1.2 7.1 Sowing 163 -1.6 6.5 -0.7 7.4 Cane crushing 162 1.5 6.3 0.5 8.2 Harvesting 161 -0.5 7.7 0.2 8.3 Unskilled Laborers 158 -0.9 7.8 -0.5 7.6 Threshing 158 -1.3 8.8 -0.2 7.3 Transplanting 151 0.2 7.2 0.4 7.2 Winnowing 149 0.4 6.8 0.8 7.4 Picking 148 -0.3 8.1 -0.7 7.2 Weeding 145 -0.1 6.9 0.1 7.2 Cobbler 131 -1.4 3.9 -1.1 5.2 Sweeper 112 -1.9 5.7 -1.7 6.2 Herdsman 101 -2.3 8.0 -2.2 8.4 ACGR of real wage rates (%)
  • 29.
    Year Mason Carpenter Tractor Driver PloughingSowing Harvesting Unskilled Laborers High wage rate states Tamil Nadu (P) 7.8 7.8 7.1 6.4 6.9 7.8 7.1 Tamil Nadu(S) 6.7 6.3 6.2 5.4 5.8 7.1 6.6 Andhra Pradesh(P) 5.7 5.7 6.9 9.6 9.4 8.7 8.2 Andhra Pradesh(S) 5.6 5.9 5.5 10.2 7.7 9.0 8.4 Haryana(P) 1.6 3.3 3.7 6.3 4.8 3.3 5.0 Haryana(S) 1.4 3.4 3.0 4.3 4.1 3.5 5.3 Punjab(P) 2.5 2.3 7.3 4.8 4.7 7.3 6.0 Punjab(S) 1.3 1.5 5.5 4.5 5.6 5.5 4.6 Medium wage rate states Karnataka(P) 2.5 3.2 3.4 8.2 6.9 7.8 6.2 Karnataka(S) 2.1 3.0 4.1 5.7 6.2 7.0 5.7 Maharashtra(P) 2.6 2.2 4.4 6.3 6.2 7.0 5.5 Maharashtra(S) 1.3 1.4 3.5 4.8 5.1 5.0 4.0 Rajasthan(P) 3.3 3.0 2.9 3.3 4.4 7.9 6.5 Rajasthan(S) 3.3 2.1 2.0 4.8 0.4 7.0 6.6 West Bengal(P) 1.2 0.7 1.0 1.8 4.1 4.0 4.3 West Bengal(S) 0.3 -0.3 0.8 2.5 4.0 4.1 3.9 Gujarat(P) 0.3 -1.5 -1.5 0.5 -0.4 0.8 1.4 Gujarat(S) -1.0 -2.5 -1.7 -0.3 -1.3 -0.3 0.6 Low wage rates states Uttar Pradesh(P) 2.9 1.9 3.7 4.1 4.3 4.1 5.2 Uttar Pradesh(S) 1.7 0.6 2.9 2.1 3.4 3.2 4.0 Bihar(P) 1.9 1.3 2.0 4.5 4.1 3.1 4.6 Bihar(S) 1.0 0.3 1.7 4.1 2.8 2.1 3.7 Orissa(P) 1.6 0.8 -0.9 6.8 5.3 5.8 6.8 Orissa(S) 0.7 -0.1 -1.2 6.6 7.0 6.7 6.5 MP(P) -0.6 -0.5 3.3 3.8 4.2 5.2 4.1 MP(S) -4.8 -1.0 1.8 2.2 2.2 2.5 3.6 All India(P) 2.5 2.3 3.4 4.5 4.1 5.0 5.2 All India(S) 1.8 1.6 2.7 3.8 3.4 4.0 4.7 Annual compound growth rates of real wage rates (2005-12),
  • 30.
    State Period APPunjab Haryana TN All India Unskilled P-I 3.5 5.0 0.7 2.6 3.6 P-II 7.1 7.4 5.8 5.8 5.1 Over all 2.9 4.3 1.7 2.9 2.9 Ploughing P-I 2.5 1.0 2.1 5.1 1.3 P-II 10.3 6.3 6.4 6.5 4.7 Over all 4.7 2.7 3.0 3.0 1.7 Harvesting P-I 3.0 2.0 2.4 1.3 1.0 P-II 10.3 8.1 4.1 7.2 5.1 Over all 5.2 3.1 2.6 2.5 1.8 Sowing P-I 5.1 3.1 1.8 1.7 2.1 P-II 4.2 6.8 4.9 6.9 4.3 Over all 2.2 2.8 2.7 2.3 1.9 Tractor P-I 3.2 3.9 1.9 2.5 3.7 P-II 2.5 4.0 6.6 7.5 4.5 Over all 2.2 3.4 1.9 3.0 3.0 Mason P-I 1.2 0.1 2.5 4.6 2.0 P-II 2.1 2.4 3.5 7.8 2.7 Over all 1.5 0.2 1.4 4.0 1.4 Carpenter P-I -0.5 4.3 -0.2 4.5 4.2 P-II 4.0 2.8 2.4 7.6 -1.4 Over all 0.8 1.5 0.2 3.9 0.8 ACGR of wage rates in high real wage rate states (developed states)
  • 31.
    State Period BiharOrissa MP UP Unskilled P-I 5.4 4.5 2.4 4.1 P-II 4.7 5.3 4.3 1.6 Over all 3.9 3.1 1.6 1.5 Harvesting P-I 2.6 2.2 2.1 3.5 P-II 4.4 7.2 0.7 4.7 Over all 2.2 3.2 0.9 2.3 Sowing P-I 4.2 5.7 4.7 4.4 P-II 4.5 4.0 3.5 -0.2 Over all 2.8 3.5 2.1 1.8 Tractor P-I 3.0 2.1 4.5 2.3 P-II 4.5 3.7 -0.6 3.0 Over all 2.8 2.4 1.8 1.0 ploughing P-I 5.3 4.1 3.7 4.0 P-II 4.8 7.0 3.2 3.7 Over all 4.2 3.6 2.1 2.7 Mason P-I 4.8 4.2 1.5 3.8 P-II 2.0 1.6 -0.7 1.3 Over all 2.8 2.0 0.2 1.8 Carpenter P-I 5.4 4.0 2.3 3.7 P-II 3.5 6.3 -0.2 0.8 Over all 2.5 3.2 0.6 1.7 ACGR in low real wage rate (less developed) states
  • 32.
    Ratio of maleto female wage rates Farm and non-farm sector 0.0 0.5 1.0 1.5 2.0 2.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ratio farm work non-farm work Linear (farm work) Linear (non-farm work) Declining gender wage gap
  • 33.
    Ratio of wagerates(non-farm to farm) 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ratio Male Female Linear (Male) Linear (Female)
  • 34.
    0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ratio Ratio of wagerates of mason to ploughing Uttar Pradesh Gujarat Rajasthan Bihar Orissa Punjab Madhya Pradesh Maharashtra All India Haryana Karnataka Tamil Nadu Andhra Pradesh West Bengal
  • 35.
    -60 -40 -20 0 20 40 60 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 The coefficients forthe year dummies on wages ploughing harvesting unskilled sowing mason tractor carpenter
  • 36.
  • 37.
    Work type /itemFemale Male % over female (I) Hours with economic activities 23.1 36.2 56.7 Paid work 12.3 20.8 69 Own farm 5.2 8.5 62 Own livestock 5.1 6.3 24 Other own 0.5 0.6 33 (II)Hours with non-economic activities 28.1 8.8 -68.7 Domestic duties 26.3 6.5 -75 Seriously ill 0.9 0.6 -33 Unemployed 0.9 1.7 83 Hours with economic and non-economic activities (I+II) 51.2 45.0 -12.1 Wage income ( /year) 7920 27000 241 Wage rate ( /8 hours) 99 200 102 Imputed income , if income of non-monetary work days are imputed with on-going wage rates for male and female respectively 32967 58400 77 Imputed income , if income of non-monetary work days of both men and women at the on-going wage rates of female ( 99/8 hours) 32967 42551 29.1 Average level of education 5 8 Average hours/week of female and male (2010)
  • 38.
    Salient features  Structuraltransformation in rural economy  Raising real wage rates  Divergence in wage rates  Stagnation in labour productivity in agriculture  Shift in engines of growth  Increase in rural non-farm sector and diversity of income
  • 39.
    Long run trends.. Most of the workers are spent more days in self-employment in agriculture with very few days in paid work. Both men and women have more leisure time during the 1970s compared to early 2000s. However, from 2001 onwards, there has been an increase in non-farm employment opportunities in both self-employment and also paid work mostly for rural male, but most of the rural women remained in farm sector. Results also shows that even though education improves chances of getting higher remunerative employment, still rural labour markets are segmented based on social groups to 2 some extent.The high unemployment among educated youth indicates that the skills acquired by the educational system are not meeting the needs of the rural economy. However, many parents are investing heavily in children’s education with the expectation of getting higher paid urban jobs. Over the period, gender and caste differences in wage rates decreased slightly, but are not eliminated wholly.
  • 40.
    Long run trends.. Menwork days are more than women work days per year, however If we take domestic work into consideration women work more days than men.Attached labourer are almost eliminated with the implementation of bonded labour abolition act and most of them shifted to different occupations including cultivation or casual agricultural labourer or took up petty businesses.There is significant increase in farm mechanisation in recent years due to scarcity of labour and higher wage rates.The results also show that the real wage rates started increasing much before the introduction of a major employment guarantee program (MGNREGA) and mostly driven by increased non- farm employment opportunities, rural-urban linkages, migration and increased agricultural productivity.
  • 41.
    Conclusions  Overall, menreported 36.2 hours per week compared to only 23.1 hours per week in economic activities.  If we consider both economic and non-economic activities, participation of women increased to 51.2 hours compared to only 45.0 for men as women spent more hours in attending domestic duties.  However, men work more hours in paid work (20.8 hours) than women (12.3 hours).  The gap in income earned from monetary activities between men and women is much higher. But, if we impute the value of the domestic duties of both men and women equally, the gap in incomes between men and women drastically reduced from 241% to just 29%.  Illiterate women loaded with more hours of paid-work as well as domestic work. Labor markets are segmented based on social background to some extent (after discounting for human and physical capital) and supports segmented labor market theory.
  • 42.
    Conclusions Cont..  Itis interesting to see that the hours worked in economic activities increases with ownership of land and assets rather than education in rural India.  Level of education and experience have little influence on choice of occupation and quality of employment of individuals both men and women, as still rural employment in rural India is mostly confined to the technologically backward sectors even in non-farm sector and business like petty business, general stores, toddy tapping, repair shops, transport and construction works which require very little skill levels and education levels.  However, the quality of work improves significantly for only few higher educated men and women in service sector employment like teachers, nurses, record keeper, health workers; most of the educated youth remain unemployed. Especially most of the educated women engaged in domestic duties due to lack of commensurate employment opportunities in rural areas. Even though in the villages returns to education is low or non- significant, people are investing heavily in educating their children with the expectation of getting urban employment mostly as engineer or doctor or even a software engineer in America etc.  Most of the parents persuade their children to go to urban centres as soon as they completed the higher education with expectation of huge remittance money.
  • 43.
    THIS CONFIRMSTHAT ATLEAST DEVELOPED STATES IN INDIA CROSSED THE LEWISTURNING POINT. THE ACCELERATION OF REAL WAGES EVEN IN SLACK SEASON INDICATESTHATTHE ERA OF LABOR SHORTAGE IS STARTED IN RURAL AREAS ESPECIALLY IN DEVELOPED STATES LIKETAMIL NADU, HARYANA, PUNJAB AND ANDHRA PRADESH,WHICH NEEDSTO BETACKLEDTHROUGH LABOR SAVING TECHNOLOGY AND WIDE SCALE FARM MECHANISATION. ONTHE OTHER HAND IT APPEARSTHAT THE UNDERDEVELOPED STATES LIKE MADHYA PRADESH, UTTAR PRADESH AND BIHAR ARE NOT REACHEDTHE LTP AND NEEDSTO DEVELOP POLICIESTO INCREASE PRODUCTIVITY OF RURAL LABOR INTHESE BACKWARD STATES. Wage rates…..
  • 44.
    Rural society inIndia is traditionally highly segmented based on caste, gender and traditional occupations, however, they are slowly reducing their influence on labor market outcomes as they are not significant in choice of employment or hours worked, they are replaced by the ownership of land and assets and owning high productive land (like irrigated area) in influencing the labor market outcomes. Demand for some caste occupations like traditional toddy-tapping (making locally made alcohol), cleaning of cloths, etc is increasing in near-by towns which can be captured by rural men and women with middle level of education. Some of the policy prescriptions from the study are • Enhancing the ownership of assets like land, irrigated area through providing loans which will increase hours worked in economic activities •Imbibing savings habit which generally increase labor force participation rate, •Enhancing quality education in rural areas beyond the higher-secondary to take advantage of growing employment in service sector and new emerging occupations like repair of mobiles, electric motors computer centres •Imparting skill development in both caste occupations and also in modern sectors and •Balanced development of both urban and rural areas through promotion of small towns. Policy Options..