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Labour Regulations and Informalization of Industrial Labour in India

In: Globalization, Labour Market Institutions, Processes and Policies in India

Author

Listed:
  • Bishwanath Goldar

    (Former Professor, Institute of Economic Growth)

  • Suresh Chand Aggarwal

    (University of Delhi)

Abstract

Informalization and contractualization of labour in India’s organized manufacturing is analysed using NSS Employment-Unemployment Survey (EUS) and ASI data for 1999–2000 and 2011–12. It is found that between 1999–2000 and 2011–12, there was a significant increase in the employment share of both informal workers (57–72 per cent) and contract workers (20–35 per cent). But, beyond this, there is considerable dissimilarity in trends. The analysis reveals that, in several industries and states, a substantial part of directly employed workers hold informal jobs. Also, while the intensification in contractualization was relatively faster among states with inflexible labour markets, this is not true for informalization. The econometric results suggest that employment protection legislation has caused contractualization of industrial workers, but probably it has not been an important factor driving informalization.

Suggested Citation

  • Bishwanath Goldar & Suresh Chand Aggarwal, 2019. "Labour Regulations and Informalization of Industrial Labour in India," Springer Books, in: K. R. Shyam Sundar (ed.), Globalization, Labour Market Institutions, Processes and Policies in India, chapter 0, pages 109-141, Springer.
    • Handle: RePEc:spr:sprchp:978-981-13-7111-0_4
    DOI: 10.1007/978-981-13-7111-0_4
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