Education Levels and Sectoral Distribution of Work in India
ducation Levels
EDUCATION LEVELS AND SECTORAL DISTRIBUTION OF WORK FORCE:
AN ANALYSIS OF URBAN INDIA I. INTRODUCTION
Low levels of literacy and educational attainment, large gender disparity in enrolment, completed education and labour market participation are important features of the Indian Economy. Educational systems have developed out of social demands and have tended to follow social changes rather than to lead them. This is partly because of their nature. Common to all countries are four aspects of education which are basic to social, economic and political development. These are universal primary education, literacy and adult education, technical education and university education. The developing countries see these four factors as being fundamental to their achieving 'take-off '. Traditionally, economic theory has emphasized physical capital accumulation as the most robust source of economic growth, at least in the short-run, with exogenous technical change being the long-run determinant of growth. This literature has emphasized the importance of human capital as an endogenous factor of production to explain economic growth. Existing growth literature accepts education as one of the primary components of human capital since education, other than improving productivity of labour, has certain spillover benefits meaning that over and above benefiting the individuals who receive it, it also benefits society. Different education levels have a profound impact on economic growth. The most important concomitant of development is considered to be the movement of labour from agriculture to manufacture and from manufacture to services. Economic progress has been associated with ‘tertiarisation’ of the labour market. The tertiary sector being diverse in nature constitutes of various service generating activities and each of these sub sectors has a definite role in development. The services sector has in recent decades been performing much better than
EDUCATION LEVELS AND SECTORAL DISTRIBUTION OF WORK FORCE:
AN ANALYSIS OF URBAN INDIA I. INTRODUCTION
Low levels of literacy and educational attainment, large gender disparity in enrolment, completed education and labour market participation are important features of the Indian Economy. Educational systems have developed out of social demands and have tended to follow social changes rather than to lead them. This is partly because of their nature. Common to all countries are four aspects of education which are basic to social, economic and political development. These are universal primary education, literacy and adult education, technical education and university education. The developing countries see these four factors as being fundamental to their achieving 'take-off '. Traditionally, economic theory has emphasized physical capital accumulation as the most robust source of economic growth, at least in the short-run, with exogenous technical change being the long-run determinant of growth. This literature has emphasized the importance of human capital as an endogenous factor of production to explain economic growth. Existing growth literature accepts education as one of the primary components of human capital since education, other than improving productivity of labour, has certain spillover benefits meaning that over and above benefiting the individuals who receive it, it also benefits society. Different education levels have a profound impact on economic growth. The most important concomitant of development is considered to be the movement of labour from agriculture to manufacture and from manufacture to services. Economic progress has been associated with ‘tertiarisation’ of the labour market. The tertiary sector being diverse in nature constitutes of various service generating activities and each of these sub sectors has a definite role in development. The services sector has in recent decades been performing much better than
References: Gordon, G and Unni, J (2001) “ Education and Women’s Labour Market Outcomes in India”, Education Economics, Volume 9, No 2, pp1-23 Mukherjee, D and Majumdar, M (2008) “Tertiarisation of the Indian Labour Market”, MPRA Paper No 12755, September Narayanan, K (2003), “Socio-Economic Empowerment through ICT Education: A comparative Analysis of Maharashtra and Rjasthan in India”, Presented at Converges, International Conference on the convergence of Knowledge. Prabhu,K.S and Sarkar, P.C Self, S and Grabowski, R(2004) “ Does education at all levels cause growth? India, a Case Study”, Economics of Education Review, Volume 23, pp 47-55 MAHARASHTRA