Mobility and Stagnation in India's Rural Labour Market

Rajarshi Majumder

doi:10.25175/jrd/2017/v36/i1/112698

Abstract

Transformation of the countryside from agrarian subsistence economy to nonfarm monetised economy is propagated as a precursor of growth and development that 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 the changing pattern of rural labour movement as 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 others are stagnating in the 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.

Highlights

Development theories lay great emphasis on the necessity of transforming a predominantly agrarian subsistence economy to a non-farm monetised economy as a facilitator of growth and development
Employment Status: The quarter century period of 1983-2009 has witnessed a marginal drop in Labour Force Participation Rate (LFPR) in rural India at the aggregate (Tables 1 & 2; Figure 3). This has been accompanied by a fall in employment rate as well, indicating lower absorption of rural labour into productive jobs
What are the clear messages coming out of this analytical exercise? First, evidence shows that the transformation process currently underway in the rural labour market in India is a stunted one

Summary

Introduction

Development theories lay great emphasis on the necessity of transforming a predominantly agrarian subsistence economy to a non-farm monetised economy as a facilitator of growth and development. The process involved in such a transformation includes movement of workers from agriculture to secondary and tertiary sectors, from cultivation to non-farm activities, from self-employment to wage labour – both over time and across generations.

Results

Conclusion