Labor Elasticity of Outputin the Indian Industrial Sector

The main focal point of this study is to investigate the presence of structural shift in the growth rates of output and labor and labor elasticity of output during post-economic reform period in the Indian industrial sector. The empirical results of the present paper based on the time series data from 1974 to 1998 period exemplify that there is an upward shift in growth rate of output and no shift in the growth rate of labor employed during post-economic reform period. The differential coefficient of labor elasticity of output is statistically insignificant showing the absence of shift in the magnitude of labor elasticity of output during post-economic reform period in the Indian industrial sector.