Scholar:  Arshid Ahmad Mir

Supervisor: Dr Javaid Iqbal Khan

Date of joining: 01-12-2018

Research topic: Dynamics of labour force participation in Jammu and Kashmir


The general conclusion of human capital theory (Schultz, 1961 and Romer, 1990) is that there exists positive relationship between human capital formation and labour productivity. This increase in labour productivity is expected to result in an increase in rate of labour force participation (Nabila Asghar et al., 2017, Rasim et al., 2016 and George J Borjas2016).In Indian context no such relationship exists. With the increase in human capital formation in the post reform period, Indian labour force has exhibited secular decline. Labour force participation rate decreased from 38.1% to 36.4% during 2007 to 2012 (NSSO). Similarly in context of state of Jammu and Kashmir the labour force participation rate exhibited decline from 32.1% to 31.1% during 2009-12 (NSSO). The HDI indices have improved over the same period of time, educational attainment and health indicators have also improved. Literacy rate in India has improved from 64.83 to 74.04 and life expectancy from 62 years to 67 years during 2001-2011. More so, Literacy rate in Jammu and Kashmir has improved from 55.2 to 68.74 and life expectancy from 67 to 72.6 during 2001-2011. (Census 2011).Despite the fact that India continues to experience high economic growth rates since 1990s. It has not been sufficient to generate the required number of decent job opportunities (D.K. Joshi 2014, J Thomas 2012) .The effects of nonparticipation on society are potentially severe, slower economic growth and rising dependence ratio.

It is in the above backdrop that the present study proposes to enquire into the explanatory factors responsible for lower labour force participation rate in the state in an era of increasing human capital formation.