A quarter of a century: mobility and stagnation in India’s rural labour market

Rajarshi Majumder

MPRA Paper from University Library of Munich, Germany

Abstract: Transformation of the countryside from agrarian subsistence economy to non-farm monetised economy is propagated as a precursor of growth and development and involves shifting of labour from farming to off-farm activities. India has started its journey in this path but has a long way to go. Researchers also question whether the changing pattern of rural labour is a positive phenomenon or a distress one. This paper attempts to examine the complexity of changes in rural labour market in India over a quarter of a century to untangle the dynamics. It is observed that the changes taking place are not always conducive to progress as a large part of it is distress driven. While some social groups are going up the ladder, a large mass of the others are stagnating in same or similar occupations. It appears that agriculture still holds the key to rural development. A three pronged strategy of agricultural progress, human capital formation, and rural industrialisation is necessary for breaking the shackles of continuity and usher in changes that are real rather than apparent.

Keywords: Rural Labour; Employment; Stagnation; Occupation Mobility; Poverty (search for similar items in EconPapers)
JEL-codes: J21 J24 J31 J43 J62 (search for similar items in EconPapers)
Date: 2013-12, Revised 2014-10
New Economics Papers: this item is included in nep-agr
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