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Rural construction employment boom during 2000-12: Evidence from NSSO surveys
, R. Nagaraj
Published in Economic and Political Weekly
2017
Volume: 52
   
Issue: 52
Pages: 54 - 63
Abstract
Amid (near) jobless economic growth during 2000-12, construction employment boomed at over 9% annually. It was part of a 10 percentage point rise in fixed capital formation rate in 13 years, to 35% of gross domestic product. The boom was rural, growing 2.5 times (at over 12%) as fast as in urban areas (at a mere 5%). National Sample Survey Office primary data reveals that a rise in rural private residential construction is the principal factor explaining the boom. This suggests improvements in rural housing status: conversion of kutcha houses into pucca houses. Decline in price-to-income ratio-of cement to rural wages-expanded rural construction demand. The popular perception (or explanation) for the rural construction employment boom in terms of rural-urban migration-of short-term, circular or seasonal-does not hold water.
About the journal
JournalEconomic and Political Weekly
PublisherEconomic and Political Weekly
ISSN00129976
Open AccessNo