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Structure of Employment across Three Tiers of Government: China, India, and the United States


Figure 2: Structure of Employment across Three Tiers of Government: China, India, and the United States

Figure 2 compares the structure of employment across three tiers of government in China, India, and the United States. It shows the percentage of government employees at the federal, state, and local levels of government.

The chart reveals a striking contrast between the three countries. In the United States, two-thirds of government employees work for local governments, while in China, the majority of public employment is at the subprovincial levels, with county governments having the largest share.

In contrast, India has a very different structure of public employment. During the period from 1980 to 2012, the share of the central government declined from 21.1% to 14.3%, while the share of subnational government increased from 36.3% to 40.8%. This means that a significant portion of public employment in India is concentrated at the subnational level, with local government employees making up a relatively small percentage of the total.

This contrast in the structure of public employment has important implications for the delivery of public services and the overall effectiveness of the state. It suggests that India's local governments may face resource constraints, both in terms of financial resources and human capital, which could impact their ability to deliver basic public goods and services.

 

 Figure 3: Public Employment in India by Different Levels of Government (per million population)

Figure 3 illustrates the changes in public employment in India by different levels of government over time. It shows the number of public employees per million population at the central, state, and local levels of government.

The chart reveals that the total number of public employees in India has declined at all levels of government since the early 1960s, despite steady and strong increases in per capita income. This decline in public employment is particularly notable at the local level, where the number of employees per million population has decreased significantly.

This trend suggests that India's public sector has become more efficient over time, with fewer employees required to deliver public services. However, it also raises concerns about the potential impact of reduced public employment on the delivery of essential services, especially at the local level, where resources may already be limited.

Source of the Charts

Citation

Kapur, Devesh. 2020. "Why Does the Indian State Both Fail and Succeed?" Journal of Economic Perspectives, 34 (1): 31–54.DOI: 10.1257/jep.34.1.31

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