Regional Development and Rural Unemployment in Low Income States

Author:

bag dinabandhu1

Affiliation:

1. National Institute of Technology Rourkela

Abstract

Abstract This paper aims to determine whether the low-income states have had adequate schemes to contain short or long-run unemployment. It finds that the allocations under rural works programs could impact the short-term unemployment rates. The rural model behaves differently from urban model. It projects that a thousand new applicants to the Live register would raise unemployment by 1.66%, adding one thousand person days to rural works could reduce unemployment by 2%, and adding five new micro, small and medium enterprise (MSME) jobs could reduce unemployment by 1.2%. Since large-scale industrial development is a slower process, the low-income state may emphasize to contain rural employment. The implications of these findings lie in monitoring of the live register and objective targeting of rural works expenditure allocations within the state. JEL cODES : A14, A10, Go, c30

Publisher

Research Square Platform LLC

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