Education, Employment and Economic Growth with Special Reference to Females in Kerala

Ruchi Bhalla () and Surendra Meher
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Ruchi Bhalla: Babasaheb Bhimrao Ambedkar University
Surendra Meher: Babasaheb Bhimrao Ambedkar University

The Indian Journal of Labour Economics, 2019, vol. 62, issue 4, No 6, 639-658

Abstract: Abstract Human development is considered to be the ultimate objective of development, with economic growth as a means to achieve it (Ranis et al. in World Dev 28(2):197–219, 2001). Development stands to be justified when it is equipped with good employment opportunities. Employment provides the means for meeting the income and subsistence needs of the individuals and their families, which fulfils the goal of overall and equitable development (Mathew in Int Labour Rev 154:497–518, 2015). Employment levels would rise when there is sufficient and efficient human capital. Human capital establishes an interconnection between employment and development. The relationship between education and employment is better understood through the labour market, which has a mediating role in influencing educational choices and employment prospects. Against this background, this paper tries to examine the interlinkages between human development, economic growth and employment situation in India with special reference to females in Kerala. Using secondary data, this paper tries to address primarily two objectives: firstly, to examine the relationship between educational attainment, employment and economic growth in India and secondly, to explore the trends and pattern in female employment state-wise with the main focus on Kerala. There exists a huge mismatch between the demand and supply gap among labour force in all Indian states. Employment trends in India, and in particular, women’s employment, have been an issue of considerable discussion in scholarly writings over the last few years. Extensive literature review and data suggest that though there has been a constant rise in the educational level of women in India, the employment rates have not raised at a similar pace. Kerala, the most literate state of the country, shows an identical picture among higher educated women where unemployment rate is as high as 20–30%. Women’s individual job preferences, overall high unemployment in the economy, family constraints, lack of adequate skills and discouraged worker effect are some of the probable reasons for high unemployment among females. The study concludes that “Kerala model of development,” on the basis of its impressive historical accomplishment in social and human development indicators, is definitely praiseworthy but not to be replicated. It is so because though the model has surpassed every state in terms of human development indicators, it showed a development trajectory by fostering unemployment rates, especially in terms of female participation. Therefore, the study suggests that in order to achieve holistic development, there is an urgent need to understand the basic requirement of a particular state. Considering female employment, the study evokes creation of an environment that promotes women to join workforce and thereby attain economic growth. States such as Kerala which have a large pool of educated women must develop policies which aim towards enhancing their employability skills so that the benefits of human capital can be obtained.

Keywords: Education; Economic growth; LFPR; WPR; Unemployment (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s41027-019-00197-2

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