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VOL. 7, ISSUE 1 (2025)
Navigating the impact of average daily wages on employment rates: A study of rural India
Authors
Tejashree K
Abstract
India being a country where more than half of
the population depends on agriculture and other related activities, it is
important to study how average daily wages affect the livelihood of the rural
population thereby impacting the employment rates. The objective of the paper is
to analyse the factors influencing the employment rates in rural areas with a
special focus on average daily wages, rural population and literacy rates. The
purpose of the study is to assess the degree to which the explanatory variables
affect the response variable and determine whether a positive, negative or no
impact exists between these variables. The study uses a regression model using
the OLS method to conclude the results from the available data. The findings
suggest that average daily wages and rural population have a negative
relationship with the employment rates. Increase in employment rates with an
increase in daily wages can be tackled by introducing subsidy schemes for
employers so that they can hire more workers. Since there is also a mismatch
between the skills required by the employers and the skills the workers have,
it is also recommended to enhance initiatives like Skill India with a special
focus given to rural population. To become a developed country, India has to
focus on methods of increasing the participation rate of women in the labour
force and a need for stronger institutions.
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Pages:40-43
How to cite this article:
Tejashree K "Navigating the impact of average daily wages on employment rates: A study of rural India". International Journal of Social Science and Humanities, Vol 7, Issue 1, 2025, Pages 40-43
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