The paper draws attention to the conceptual errors that arise out of the use of cross‐sectional data in the estimation of elasticity of person day employment with respect to output. It is argued that, since labour input varies significantly from crop to crop and for the same crop between different regions, it is necessary to bring this aspect explicitly into the analysis along with level of output. An alternative methodology is suggested and it is estimated that in India during the triennium ending 1970–71 to the triennium ending 1978–79 aggregate employment in crop husbandry increased by 21.02 per cent, which gives an employment elasticity with respect to total production of 0.76.