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Ageing ascendances labour force participation in India: myth or reality?

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Abstract

The ageing of the population is a growing concern in both industrialised and emerging nations, including India. The growing number of greying people has severe consequences not only for the economy but also for labour force participation. The paper aims to investigate the impact of population ageing on the labour force participation rate in India, utilising data from the “World Bank”. As the time series variables are stationary at the first difference and co-integrated, we have employed the “Vector Error Correction Model” to explore the concerned objective. The findings show that population ageing has a severe impact on labour force participation rates in both the short and long run. The study concludes that technical advancement and the accumulation of human capital can address the decline in labour force participation. It emphasises that in order to achieve the “accumulation of human capital”, emphasis should be entrusted on “education” and “health”.

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Fig. 1

Source: World Bank

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We did not receive any specific financial assistants from any funding agencies in the public, commercial, or not-for-profit sectors.

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Authors and Affiliations

  1. Department of Economics with Rural Development, Vidyasagar University, Midnapore, West Bengal, India

    Shrabanti Maity

  2. Department of Commerce, Karimganj College, Karimganj, Assam, India

    Anup Sinha

  3. Department of Economics, Assam University, Silchar, India

    Niranjan Roy

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  1. Shrabanti Maity
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  2. Anup Sinha
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  3. Niranjan Roy
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Appendix

Appendix

See Tables 8 , 9.

Table 8 VAR lag order selection criteria
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Table 9 Result of post estimation tests
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Maity, S., Sinha, A. & Roy, N. Ageing ascendances labour force participation in India: myth or reality?. J. Soc. Econ. Dev. (2023). https://doi.org/10.1007/s40847-023-00296-3

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