ABSTRACT

The Indian economy has experienced a structural change post 1980, where per worker productivity in different sectors of the economy has changed over the period. An attempt is made to understand the dynamics of labor productivity in India during 1980–81 to 2011–12 at the disaggregate level of 27 industries spanning all sectors of the economy for a better understanding of the underlying trend and causes of changes in labor productivity. An attempt is also made to find out the sources of growth in labor productivity. Finally, industry decomposition of labor productivity growth is also estimated in order to understand the movement of labor within and between industries.