Ghose, Ajit K. and Mehta, Balwant Singh

New technologies, employment, and inequality in the Indian economy - Economic & Political Weekly - 59(50), Dec 14, 2024: p.65-74

During the two decades since the 2000s, technological change in India has increased the demand of high-skilled labour, while reducing employment opportunities for low-skilled labour across both manufacturing and services sectors. This period also witnessed significant capital deepening in the economy. Structural shifts in the composition of value added further led to skill upgrading, leading to a relative increase in employment of middle-skilled labour. However, this process of skill-upgradation has coincided with slow growth of aggregate employment. Technological change has modestly contributed to income inequality by increasing employment inequality, while the structural shift towards services-led growth has emerged as the primary contributor of rising income inequality in India.- Reproduced

https://www.epw.in/journal/review-labour-and-employment/new-technologies-employment-and-inequality-indian.html