An Analysis Upon Employment Generation and Economic Policies of Liberalization, Privatization and Globalization: Examining the impact of liberalization, privatization, and globalization on employment generation in India

Abstract

The Indian economy has entered a phase of high growth inthe recent years, after a long period of low growth. Since economic growthitself is not sufficient to achieve economic development, the concern of policymakers seems to have shifted towards making the growth inclusive – a processwherein employment is at its core. The Indian economy has entered a phase ofhigh growth in the recent years, after a long period of low growth. Sinceeconomic growth itself is not sufficient to achieve economic development, theconcern of policy makers seems to have shifted towards making the growthinclusive – a process wherein employment is at its core. The availableevidence, however, tends to indicate that the high growth has been accompaniedby low employment growth in the organised manufacturing sector. Trade liberalization refers to the removal of governmentincentives and restrictions from trade between nations. Rapidly increasingflows of goods and services across national borders have been the most visibleaspect of the increasing integration of the global economy in recent decades. A review of the current debate on the impact ofglobalization on employment, poverty and inequality in developing countriesreveals that the predictions of the given trade theories that increased tradeand FDI consequent to globalization would result in higher employment in laboursurplus economies has not always proved correct. Even in the developedcountries, there is growing unease due to doubling of global labour forcebecause of the entry of BRICS into the trading system. This study presents a method for improved estimation ofmeasures of firm dynamics and job creation. We use employee flow information tore-establish broken links between records of the same firm, and to identifyrelationships between firms in case of mergers, take-overs, split-offs, andother forms of restructuring. The method is developed on the basis of a linkedemployer-employee data set covering all private employment in India.