Recent Employment Trends in India and China:An Unfortunate Convergence?

Apr 5th 2007, C.P. Chandrasekhar & Jayati Ghosh.

This paper argues that both China and India, despite the similarity of the current international hype about their future economic prospects and also despite their obvious differences, face rather similar economic problems at present with respect to the labour market. In both countries, the strategy of development is delivering relatively high growth without commensurate increases in employment, especially in the organised sector; and the bulk of new employment is in lower productivity activities under uncertain and often oppressive conditions. It is argued that this paradox may be a common result of the similar strategy of economic expansion currently being followed in both countries.

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