Changes in the employment performance of Indian Small Scale Industry: Testing for structural stability

Indian Small Scale Industry plays a crucial role in the country's economic growth and development in terms of its distinguished characteristic of absorbing low skilled and semi skilled labour force. In this aspect, the present study tried to evaluate the employment performance of this sector before and after liberalization with the help of Chow test and F-Statistic. The results revealed that there is structural break and also there is significant positive relationship between dependent variable employment and independent variables production and number of units in SSI Sector in pre-reform period. But in the post reform period, number of units showed negative influence on dependent variable employment.