Measuring labour input in India: A sectoral perspective

Type Conference Paper - 1st World KLEMS Conference, Harvard University
Title Measuring labour input in India: A sectoral perspective
Author(s)
Publication (Day/Month/Year) 2010
City Cambridge
Country/State MA, USA
URL http://www.worldklems.net/conferences/worldklems2010/worldklems2010_aggarwal.pdf
Abstract
A time series of labour input and composition index from 1980 to 2004 has been constructed for the aggregate Indian industry as well as its 31 sectors. Employment is measured by usual principal and subsidiary status (UPSS) and is combined with number of days worked in a week and number of hours worked in a day to get total hours worked in a week and a year. Labour composition index based on the methodology of (JGF) Jorgenson, Gollop, and Fraumeni (1987) and using the Tornqvist translog index is also computed for both the total economy and the 31 sectors. The composition index is also decomposed into age, gender and education indices for the total economy.A Mincer wage equation has been used to estimate the wages of the self-employed persons and Heckman’s two step method is used to correct for the sample selection bias.For the manufacturing sector, the employment is bifurcated between the organized sector (obtained from ASI) and unorganized sector.

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