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Much of the debate on industrialization and displacement has, so far, focused on the optimum compensation for affected households. Our recently concluded study, comprising of a sample of 1017 households including 630 affected (displaced and land acquired) and 387 unaffected households, looks at the long-term livelihood effects of the Falta Special Economic Zone in West Bengal, India. The main findings indicate a lower labour market participation rate among affected household members. However, members of displaced households show the highest work participation rate in the industrial zone but with a lower return to education than others. Women earn about 17 percentage points less compared to men after controlling for education and experience and this gap is 5 to 10 percentage points higher for FSEZ employees; but this gap is narrowing over time likewise the gender education gap.

The Livelihood Effects of Industrialization on Displaced Households: Evidence from Falta Special Economic Zone, West Bengal