Rural unemployment : a survey of concepts and estimates for India

Abstract

Five distinct and significant rural unemployment rates and magnitudes can be identified in the data on rural unemployment. The crucial distinctions required for the interpretation of Indian data are those between: (a) time-rates and person-rates; (b) current status and usual status rates; and (c) rates excluding and including underemployment. Other distinctions are those between micro and macro rates and rates based on the voluntary and normatively determined supply of labor. It was noted that unemployment increased rapidly during the 1970s and that the figures on underemployment are staggering. Data on distributions of the unemployed by age, sex, education, region, expected wages, current income, tenurial status, work and location preferences, willingness to migrate, and job-search behavior are summarized. A five-sector model of labor allocation and wage determination distinguishes five types of unemployment according to the dominant causes. Estimates of surplus labor for India are reviewed.