Impact of Key Infrastructure Sectors in Creating Formal and Informal Jobs in Two States: Indian Regional IO Analysis

  • Anushree Sinha
  • Rajesh Jaiswal
  • Avantika Prabhakar
Part of the Springer Proceedings in Business and Economics book series (SPBE)


The states in India are investing in infrastructure, and a large share of investment is made in irrigation canal construction, building construction national highways/urban roads construction, rural roads construction and other construction. Given this, the major objective of this study is to develop a set of employment multipliers (direct, indirect, induced) for selected infrastructure sub-sectors in the two selected states of India, i.e. West Bengal and Gujarat. The methodology used was the input–output multiplier analysis. We have used the hybrid methods for developing the regional IO tables, combining a survey along with non-survey techniques, and we also used the NSSO (66th round, unit-level data) to get worker distribution by sectors and as formal and informal. Major findings show that employment multipliers in Gujarat are highest for rural roads construction (for formal, informal and total workers). The induced effects for both formal and informal employment are highest for buildings construction, reflecting that induced multiplicative effects are high for buildings in the Gujarat economy. In West Bengal, employment multipliers for irrigation canal construction (for formal, informal and total workers) are higher. But, induced effects for formal employment are highest in buildings and national highways/urban roads construction and for informal employment are highest in national highways/urban roads construction.

JEL Codes

O18 (Urban, Rural, Regional, and Transportation Analysis; Infrastructure) R11 (Regional Economic Activity: Growth, Development, and Changes) J23 (Employment Determination; Job creation; Demand for Labour) 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Anushree Sinha
    • 1
  • Rajesh Jaiswal
    • 1
  • Avantika Prabhakar
    • 2
  1. 1.National Council of Applied Economic ResearchNew DelhiIndia
  2. 2.J-PAL South AsiaChennaiIndia

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