Unions, Wages and Labour Productivity : Evidence from Indian Cotton Mills
AbstractThis paper uses firm level data from all the textile producing regions in India to examine the relation between wages, unionization and labour productivity. We find that fewer workers were employed per machine in the unionized mills in Bombay and Ahmedabad, as compared to non-unionized regions implying that low labour productivity was not due to union resistance to increased work intensity. Our findings suggest that while low wages in India encouraged overmanning, higher wages, prompted by unionization, had productivity enhancing effects. We explore alternative explanations for low labour productivity, arising from the managerial and institutional structure of Indian cotton mills.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 753.
Length: 37 pages
Date of creation: 2006
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-28 (All new papers)
- NEP-CWA-2006-07-28 (Central & Western Asia)
- NEP-DEV-2006-07-28 (Development)
- NEP-EFF-2006-07-28 (Efficiency & Productivity)
- NEP-HRM-2006-07-28 (Human Capital & Human Resource Management)
- NEP-LAB-2006-07-28 (Labour Economics)
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