Chandan Sharma Knihy

This book focuses on the gender-specific labour force participation rates across regions in India and identifies its most important determinants. Before concentrating on the Indian context, it examines the participation rates of various countries in the Asia-Pacific region. Not unexpectedly, the study shows that the rate is significantly lower for females than for males in this region. The rural–urban differentials are more pronounced and the inter-state variations are more sizable among females than males. Even in large cities, the female labour market participation is lower than that in the rural areas despite higher levels of education. However, in terms of inter-spatial (rural/urban/city) variations, the impact of infrastructure, education, health and urbanization on the labour force participation of both genders is quite distinct. On the whole, the study reinforces the stance that women’s participation in productive activities has a doubly positive impact; it not only raises the household income, but also contributes to the wellbeing of the household. These findings are important from a policy perspective, as different infrastructure variables are confirmed to improve both participation and labour productivity. As such, the book offers a valuable resource not only for researchers, but also for NGOs and policymakers.

The book explores, for India and other developing countries, the potential role the organized manufacturing sector could play as an engine of growth. Alongside growth, can this sector generate adequate employment opportunities to facilitate the transfer of labour from the agriculture sector? The book identifies the major constraints that result in limited demand for labour in the organised manufacturing sector. Beyond technological aspects, skill shortage is an important factor, resulting in sluggish labour absorption. Further, the labour market laws are not necessarily the root cause of sluggish employment growth in the organised manufacturing sector. The development of technologies that are appropriate for labour surplus countries like India is instrumental to employment creation. Though innovation is generally assumed to be capital-intensive in nature, the book argues that innovation nevertheless has a positive effect on employment in absolute terms. Lastly, the main policy issues are highlighted in terms of the priority that should be assigned to industries which can contribute to employment growth and skill formation for improving the employability of the available labour force, and to which innovations should be pursued, with a specific focus on pro-poor growth objectives.

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