Empirisk studie av Indiens tjänstesektor - Vad händer med jobben?
The fast growing economy of India has experienced fundamental structural changes in recentyears. The share of the service sectors output has more than doubled since 1950 and is todayestimated to make up almost 60 percent of India?s total output. In terms of total employmentwe have not yet seen a similar transformation. The observed discrepancy between sectorialshares of employment and output in the service sector raises questions about sustainability.This report aims to investigate the capacity of the Indian service sector in terms ofemployment creation in order to answer the question whether the recent GDP growth withinthe service sector can be considered as ?jobless? or not. The measure of employmentelasticity is used to analyze trends within and between different sectors of the Indianeconomy with focus on the service sector and its subsectors. Furthermore, we perform aGranger causality test in order to investigate the statistical causal relationship between GDPand employment. Our finding does indeed suggest the presence of jobless growth within theservice sector. Declining employment elasticity in most sectors along with the discovery ofno granger causality from GDP to employment are the two main reasons underlying thisconclusion.