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State Intervention and Labour Market in India: Issues and Options

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Author Info
Majumder, Rajarshi
Mukherjee, Dipa

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Abstract

State interventions into Labour policies in India are directed towards ensuring both job security and income security. In this paper we look at likely impact of such policies. The laws are found to serve the organised workers primarily while large masses of unorganised workers are without any security. To escape legislations, employers have substituted labour by capital, hired casual workers, and set up ancillary units. Consequently, output elasticity of employment has consistently declined and there is marked casualisation of workforce. Legislations have thus institutionalised and perpetuated labour market dualism. Reforms herein are necessary but should be implemented in a careful and phased manner to avoid deteriorating conditions in both the sectors in the name of uniformity. Linking retrenchment with Area Regeneration Programmes; upgrading employability quotient through training; allowing employers to transfer workers between units; providing easy credit and technical consultancy; and cooperative formation would help the workers.

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File URL: http://mpra.ub.uni-muenchen.de/12409/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12409.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:12409

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Related research
Keywords: Labour; State; Globalisation; Unorganised Sector;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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  1. Mukherjee, Dipa, 2003. "The Changing World of Work and No-Work," MPRA Paper 4865, University Library of Munich, Germany. [Downloadable!]
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