English
Valencià
Resumen
India’s pattern of structural transformation has been different from the rest of fast-growing Asian economies. In particular, India’s economic development has been characterized by rising shares of employment and value added in services, instead of the historically most common pattern of manufacturing. In this paper, I conjecture that high-productivity manufacturing industries in India are skill-intensive, thus showing capital-skill complementarity. This feature avoids high-productivity manufacturing from allocating the most abundant factor, unskilled labor, which results in allocating more labor to other sectors.