Influencers of the Labour Supply Model of Construction Workers in Assam, India: Analysis and Recommendations for State Interventions

Abstract

The construction sector of Assam, an Indian state, has emerged as a higher priority sector in the developmental atlas and hence, experienced a spectacular growth, with the growing process of urbanization and economic development. The intent of this study is to examine dynamics and stability of the labour supply model of the construction workers in Assam. In this study, both the descriptive and analytical methods have been used. For analysing cointegration, dynamics and stability of the labour supply model of the CWs in the state, the software- EViews 11 Student Version(x64) has been used. The study is based on the secondary data collected. The supply of construction workers in the state is growing in an upward trend. Population size in working age in the state is found to influence this trend.  For examining how the supply model of CWs as a whole is, the main model i.e. 1st cointegrating equation with the p-values has to been considered (Table 5). In this case, the value of R-squared (0.752184) is found to be more than 60%. Hence, the model is acceptable. Again, the value of F-statistic (3.863056) has been found to be significant as the p-value (0.010011) is less than 0.05.  So, it confirms that the model fits well to data set. To tackle the problem of over-supply of the building construction workers in the state in future, the study calls for government action to implement appropriate policy measures to keep family size in check. For it, the government needs to implement the family planning strategies rigorously to reduce the family size, especially among the labour section so that the surplus labour force in the construction labour market and hence, the unemployment problem among the CWs of the state does not go into a severe point.