Wednesday, October 9, 2019

A job creation policy agenda for India

I have a co-authored paper with V Ananthanageswaran on job creation in India which has been published here by Carnegie Endowment. Tim Taylor, the editor of Journal of Economic Perspectives, has reviewed the same here.

The main argument is that instead of the larger firms and micro-enterprises, the policy focus should be more on formal, young and growing firms started by educated entrepreneurs. Job creation is largely by this category of smaller firms, especially in their initial five years or so. We provide some possible measures to address them - policies that support the creation and growth of such firms. 

Among the measures is that on SMEs and job creation. Providing management capacity services as industrial public goods for small and young firms. We present a policy proposal in this regard. Dani Rodrik talked about them as extension services in an oped recently here. The policy argument is about providing management capacity training as a private consultancy type good, as opposed to large-scale mass training programs, as part of industrial policy. I foresee it becoming part of industrial policy toolkits as job creation becomes a big agenda going forward.

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