Surplus Labor in Indian Manufacturing: Evidence from the Annual Survey of Industries

Subhash Ray and Anasua Bhattacharya ()

No 2003-14, Working papers from University of Connecticut, Department of Economics

Abstract: In this paper we analyze state level data for total manufacturing constructed from the Annual Survey of Industries for the period 1986-2000 using the nonparametric method of Data Envelopment Analysis (DEA). We assess the extent of surplus labor in the manufacturing sector in the individual states in India. The study also investigates whether the same states show the maximum incidence of surplus labor every year in the sample period and if there any evidence that the extent of surplus labor in manufacturing has been reduced or eliminated in the post-reform era. Our study shows the presence of considerable measure of surplus labor in all of the years in a majority of the states. Things have worsened rather than improved after the reform. Also, the regional distribution of surplus labor has remain fairly unchanged with the same states performing inefficiently both before and after the reform.

Pages: 25 pages
Date: 2003-05
New Economics Papers: this item is included in nep-geo and nep-lab
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Citations: View citations in EconPapers (3)

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