Manash Pratim Sarma

https://doi.org/10.64823/ijter.2606019

Labour force participation and wage determination are critical indicators of labour market performance and inclusive economic development, particularly in rural regions where employment opportunities remain constrained. This study examines the socio-economic determinants of labour force participation and wage earnings in Darrang district, Assam. Specifically, it aims to analyse the socio-economic profile of the labour force, identify the factors influencing labour force participation, and examine the determinants of wage earnings among employed individuals. The study is based on primary data collected from 300 working-age respondents selected through a multistage random sampling technique. Descriptive statistics were employed to analyse the socio-economic characteristics of respondents, while Binary Logistic Regression and Multiple Linear Regression models were used to estimate the determinants of labour force participation and wage earnings, respectively. The findings indicate that education, work experience, skill training, and gender significantly influence both labour force participation and wage earnings. Higher educational attainment and work experience increase the likelihood of labour market participation and contribute to higher monthly earnings, whereas larger household size negatively affects labour force participation. The results further reveal that rural residence is associated with lower wage earnings, reflecting limited access to productive employment opportunities in rural areas. The study also identifies a significant gender disparity, with male respondents exhibiting higher labour force participation and wage earnings than female respondents. These findings underscore the importance of strengthening education, expanding vocational skill development, promoting rural non-farm employment, and implementing gender-inclusive labour market policies to improve employment opportunities and wage outcomes. The study provides empirical evidence that may assist policymakers in designing targeted labour market interventions aimed at promoting productive employment, reducing wage disparities, and fostering inclusive economic development in Assam.