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Job Security Regulations and Worker Turnover : A Study of the Indian Manufacturing Sector

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Author Info
Sudipta Dutta Roy (National Stock Exchange of India Ltd., Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai-400 051)
Abstract

Job security regulations were introduced in the organised labour market in India with the implementation of the Industrial Disputes (Amendment) Act 1976, subsequently made more stringent via the Industrial Disputes (Amendment) Act 1982. Earlier studies, concentrating mostly on employment and wages, have not arrived at a consensus on the impact of the regulations. The present study provides the first exploratory analysis along a third dimension of labour market flexibility - the ease with which employers use accessions and separations as instruments to bring about desired changes in employment. We provide direct evidence of the adverse impact of the regulations on labour market flexibility.

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Publisher Info
Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 37 (2002)
Issue (Month): 2 (July)
Pages: 141-162
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Handle: RePEc:dse:indecr:v:37:y:2002:i:2:p:141-162

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Related research
Keywords: Accessions; Separations; Job Security Regulations;

Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

Cited by:
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  1. Aditya Bhattacharjea, 2006. "Labour Market Regulation and Industrial Performance in India--A Critical Review of the Empirical Evidence," Working papers 141, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
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This page was last updated on 2009-10-29.

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