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Why Are Regular Salaried Employees More in Urban Areas than in Rural Areas? - Economics

Answer in Brief

Why are regular salaried employees more in urban areas than in rural areas?

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Regular salaried employees are those hired workers who are on the permanent payrolls of their employers. They are usually skilled workers and are entitled to all types of social security benefits. The concentration of these workers is higher in the urban areas as compared to the rural areas because such jobs require skilled and specialised workers. The opportunities to acquire and enhance such skills are available more in the urban areas. And these skills are acquired through the process of training and education that cannot be accessed in the rural areas due to the lack of investment, infrastructure and low literacy level of rural people. Further, the big companies are concentrated only in the urban areas due to the presence of infrastructure and availability of modern facilities like banks, transport and communication, etc. Therefore, the bulk of the jobs for the regular salaried employees are concentrated more in the urban areas resulting in the increase in number of the regular salaried employees.

Concept: Self-employed and Hired Workers
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NCERT Class 12 Economics - Indian Economic Development
Chapter 7 Employment: Growth, Informalisation and Other Issues
Exercise | Q 13 | Page 136
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