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1. Climate Adaptation and Job Creation: Addressing the Climate and Livelihoods Crises in India

Author:
Anjana Thampi
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
India was seventh in a list of the ten most affected countries due to extreme weather events in 2019. A sharp increase in the frequency and intensity of such events in the country by the end of the twenty-first century is projected. At the same time, relatively high economic growth rates have not resulted in secure and sustainable employment opportunities in the Indian economy. The loss of millions of jobs due to climate hazards in the country is also projected. In this context, I raise two key questions. First, are livelihoods in certain regions within India more vulnerable to climatic changes? The priority regions for adaptation planning and intervention are identified by constructing a livelihoods vulnerability index. Second, can institutional climate adaptation activities simultaneously address the climate and livelihoods crises in the country? The job creation estimates through five representative adaptation activities support the need for increased spending in a climate adaptation programme. Spending 1.5 percent of the GDP on a climate adaptation programme could create jobs to the extent of 1.3 percent of the labour force as of 2017-18. Investing 3 percent of the GDP on a combined climate adaptation and mitigation programme over the same amount spent instead on a fossil fuel-based programme would lead to net employment gains of around 2 percent of the labour force. This paper argues that investing in climate adaptation activities can secure livelihoods while improving mechanisms to build resilience to climate hazards. Such activities, if planned and implemented in accordance with the geographies, vulnerabilities, and socio-economic patterns of each region, could be transformational.
Topic:
Climate Change, Economic Growth, Job Creation, Adaptation, and Livelihoods
Political Geography:
South Asia and India

2. A Model Comprehensive MSME Policy for Indian States

Author:
Richard M. Rossow
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Small businesses are the job-creating engines of any healthy economy. Having a supportive policy environment can help high-potential businesses accelerate. Creating such an environment is a shared responsibility of both the central government and India’s 28 states. Many state governments in India have piecemeal policies and programs to support micro, small, and medium enterprises (MSMEs). About one-third of India’s states have worked to craft multifaceted and supportive policies and practices to encourage MSME growth. This paper reviews the ideas already enacted in different Indian states, as well as in national and subnational governments around the world. Developing a single comprehensive MSME policy is an effective approach for a state-level government to consider. It allows small firms to find policy incentives and programs in a single place, and perhaps most importantly, it allows a state to directly consider a range of intertwined incentives that can work together. This will maximize the positive impact to small firms that are poised for growth. Facilitating the growth of MSMEs will have a much wider impact on India’s job growth overall. The large multinational manufacturers that India hopes to lure to invest through programs like Make in India require a diverse and efficient network of suppliers. Supporting MSME growth can create a multiplier effect—driving new investment and employment generation by larger firms. The central government has affirmed a 25 percent target of gross domestic product (GDP) for manufacturing, up from around 14 percent today. This white paper provides leading international examples in the promotion of small businesses, while also enumerating best practices from Indian states’ MSME policies. The final section lays out the 30 elements commonly utilized by Indian states to offer targeted assistance to MSMEs as a roadmap for other states that want to provide best-in-class policy interventions.
Topic:
Development, Economics, Business, and Job Creation
Political Geography:
India and Asia

3. The Indian Startup Ecosystem and Policy Implications

Author:
Hyoungmin Han, Jeong Gon Kim, Sunghee Lee, and Jonghun Pek
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
A startup refers to a company with ideas and innovative technologies, which have a short period of experience. Recently, startups are leading the fourth industrial technological innovation and affecting job creation and industrial productivity growth, so that its economic importance is increasing. In particular, India is emerging as a startup powerhouse based on its fast-growing economy and relatively cost-efficient excellent talent pool. Also, global investment towards the Indian startup market is increasing. While the number of Korean companies entering the Indian startup market is increasing, only a few have made stable inroads into the market. Based on quantitative data, literature analysis, corporate case analysis, surveys, and in-depth interviews, we objectively identified the Indian startup ecosystem and drew policy implications to increase the accessibility of Korean firms to the Indian market.
Topic:
Science and Technology, Investment, Innovation, Industry, Job Creation, and Startup
Political Geography:
South Asia, India, and South Korea

4. Tracking Employment Trajectories during the Covid-19 Pandemic: Evidence from Indian Panel Data

Author:
Rosa Abraham, Amit Basole, and Surbhi Kesar
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Using the CMIE’s Consumer Pyramids Household Survey, we track a panel of households prior to the lockdown (in December 2019), during the lockdown (in April 2020) and afterwards (in August 2020) to investigate the employment and income effects of the Covid-19 pandemic and its associated containment measures. We identify four distinct employment experiences during the pandemic for those who were in the workforce just prior to the lockdown: no loss of employment (“No effect”), loss of employment followed by recovery (“Recovery”), loss of employment with no recovery (“No recovery”), and a delayed loss of employment (“Delayed job loss”). Overall, 54% of individuals experienced no job loss, while 30% lost work in April but recovered by August. 12% had not recovered employment as of August 2020. We analyse how these trajectories vary across different social and economic characteristics to quantify contractions and recovery in the labour market and the extent to which the vulnerabilities vary across different social groups, employment arrangements, and industries. We find that women were substantially more likely to lose employment as well as less likely to recover employment. Job loss was also more severe for lower castes as compared to intermediate and upper castes and for daily wage workers as compared to regular wage workers. Younger workers were particularly vulnerable to job loss compared to older workers. Having lost employment in April, younger workers were also less likely to recover employment in August. Finally, for those who were employed in both December 2019 and August 2020, we examine the changes in employment arrangements. We find a much greater frequency of transitions from wage employment to self-employment, more than that in the seasonally comparable period last year (Dec 2018 to Aug 2019). Our results call for urgent additional fiscal measures to counteract these effects.
Topic:
Economics, Labor Issues, Employment, Unemployment, Pandemic, Job Creation, and Consumerism
Political Geography:
India

5. How Much is a Government Job in India Worth?

Author:
Kunal Mangal
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Government jobs in India are valuable, not just because they pay relatively higher wages, but also because they provide many valuable amenities, such as lifetime tenure, access to bribes, and prestige. Does the value of these amenities compete with the nominal wage itself? I use the observed search behavior of candidates preparing for highly structured competitive exams for government jobs to infer a lower bound on the total value of a government job, including amenities. Based on a sample of 120 male candidates preparing for state-level civil service exams in Pune, Maharashtra, I estimate a total value of at least 425,000 INR per month. This estimate implies that the amenity value of a government job is at least 81% of total compensation. The high amenity value is not driven by misinformed beliefs about the nominal wage, nor by a high value placed on the process of studying itself. I conclude with a discussion of the implications of these findings for policy and the questions it raises for future research.
Topic:
Economics, Government, Employment, Public Sector, Job Creation, and Workforce
Political Geography:
India

6. India’s Employment Crisis: Rising Education Levels and Falling Non-agricultural Job Growth

Author:
Jajati Parida and Santosh Mehrotra
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Falling total employment is an unprecedented trend seen from 2011-12 to 2017-18. Due to a decline of employment in agriculture and manufacturing and slow growth of construction jobs, the process of structural transformation, which had gained momentum post-2004-5, has stalled since 2012. Mounting educated youth unemployment, and lack of quality non-farm jobs have resulted in an increase of the disheartened labour force. Though the share of regular and formal employment increased marginally due to growth of formal jobs in the private sectors, the share of informal jobs within government/public sector increased. A dominant share of jobs is still generated by micro and small units of the unorganized sectors without any formal or written job contract. In both government and private sectors the number of contract jobs (with less than a year’s contract) is on the rise post 2011-12. Not surprisingly, real wages have not increased in either rural or urban areas.
Topic:
Economics, Education, Labor Issues, Employment, Economic Growth, and Job Creation
Political Geography:
India

7. The Evolving Discourse on Job Quality- From Normative Frameworks to Measurement Indicators: The Indian Example

Author:
Divya Prakash and Sabina Dewan
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Indians are optimistic. According to the Pew Research Center’s 2017 Global Attitudes Survey, three out of four Indians believe that, “when children today in India grow up, they will be better off financially than their parents” (Pew Global Attitudes Survey, 2017). Families hinge their hopes on the ability of the next generation to work hard, earn a living, and be a source of financial support. For years now, the nation has done the same, pinning its economic ambitions to a demographic advantage, or youth bulge, that is set to continue only for the next two decades. Unless there are pathways to productive and high-quality employment, the nation’s youth will not be able to deliver on these expectations. How has India’s economy fared on job creation over the past decade? The country had just under 466 million people in the labour force1 in 2015, with a participation rate of 50.3 percent (Labour Bureau, 2015/16). An analysis of Labour Bureau data over a period of four years from 2012 to 2015 shows that on average, 4.75 million people were added to the labour force per year. According to the Labour Bureau’s Employment-Unemployment survey, between 2012 to 2015, the economy generated a total of 9 million jobs, based on Usual Principal Status -- the activity that an individual is engaged in for a major part of the reference year (Labour Bureau, 2011/12 to 2015/16).
Topic:
Economics, Labor Issues, Employment, Work Culture, and Job Creation
Political Geography:
India

8. Trade Liberalization and Aggregate Matching Function in India

Author:
Woong Lee
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This article investigates the link between trade liberalization and the job matching process in India. The aggregate matching function in India is estimated by incorporating the trade openness as a proxy for trade liberalization. The monthly data are drawn from Employment Exchange in India, the only public employment service in the country. Overall, it appears that trade liberalization leads to a decline in new hires. However, the analysis of period decomposition shows that correlation between trade-to-GDP ratio and new hires is negative and significant only in the period of the Ninth Plan, 1997 to 2002, when political influence delayed economic reform. The suggestion is made that the negative relationship between trade liberalization and new job creation does not hold except for the period of political influence and thus the Indian government should continue to promote external reform.
Topic:
Economy, Trade, Job Creation, and Liberalization
Political Geography:
South Asia and India

9. The Impact of Information Technology Outsourcing on Productivity and Output: New Evidence from India

Author:
Grace Kite
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Neither the literature on outsourcing nor the literature on the impact of information technology (IT) have previously quantified the effects of IT outsourcing. This is a particularly important omission in India, which has an IT outsourcing industry that is well placed to bring world-class applications of the technology to domestic customers. This paper provides econometric evidence which shows that there is a strong positive impact of IT outsourcing on output and productivity in India. It also demonstrates that in aggregate, IT outsourcing makes a substantial contribution to Indian economic growth.
Topic:
Science and Technology, Job Creation, Information Technology, and Outsourcing
Political Geography:
India and Asia