Impact of Key Infrastructure Sectors in Creating Formal and Informal Jobs in Two States: Indian Regional IO Analysis

Anushree Sinha, Rajesh Jaiswal and Avantika Prabhakar
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Anushree Sinha: National Council of Applied Economic Research
Rajesh Jaiswal: National Council of Applied Economic Research
Avantika Prabhakar: J-PAL South Asia

A chapter in Applications of the Input-Output Framework, 2018, pp 387-412 from Springer

Abstract: Abstract The states in India are investing in infrastructure, and a large share of investment is made in irrigation canal construction, building construction national highways/urban roads construction, rural roads construction and other construction. Given this, the major objective of this study is to develop a set of employment multipliers (direct, indirect, induced) for selected infrastructure sub-sectors in the two selected states of India, i.e. West Bengal and Gujarat. The methodology used was the input–output multiplier analysis. We have used the hybrid methods for developing the regional IO tables, combining a survey along with non-survey techniques, and we also used the NSSO (66th round, unit-level data) to get worker distribution by sectors and as formal and informal. Major findings show that employment multipliers in Gujarat are highest for rural roads construction (for formal, informal and total workers). The induced effects for both formal and informal employment are highest for buildings construction, reflecting that induced multiplicative effects are high for buildings in the Gujarat economy. In West Bengal, employment multipliers for irrigation canal construction (for formal, informal and total workers) are higher. But, induced effects for formal employment are highest in buildings and national highways/urban roads construction and for informal employment are highest in national highways/urban roads construction.

Keywords: O18 (Urban, Rural, Regional, and Transportation Analysis; Infrastructure), R11 (Regional Economic Activity: Growth, Development, and Changes), J23 (Employment Determination; Job creation; Demand for Labour) (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-13-1507-7_14

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DOI: 10.1007/978-981-13-1507-7_14

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