POLITICAL ECONOMY OF EMPLOYMENT ORIENTED DEVELOPMENT

It examines the functioning of the food and labor market as two independent markets and examines the interaction between the two and its effect on labor mobilization. It explicitly allows for (a) the varying share of labor in the total agricultural output, (b) for the varying response of food consumption to income and price changes for the two classes in the agricultural sector. This is a significant improvement over the existing dualistic theories that treat growth of agricultural output as being synonymous with growth of agricultural marketings. This model, therefore, analyzes the rate of growth of non-agricultural employment in terms of the growth rate of agricultural output as well as of changing factor shares in the agricultural sector.