Informalization of Industrial Labour in India: Are labour market rigidities and growing import competition to blame?
Since the 1980s, there has been increasing informalization of industrial labour in India. It has taken two forms: rising share of the unorganized sector in manufacturing employment and informalization of the organized manufacturing sector itself through subcontracting and use of temporary and contract workers. The paper investigates whether and how far labour market rigidities and increasing import competition are responsible for the increasing informalization on industrial labour in India. An econometric model is estimated for this purpose using unit level data of the NSS 61st round employment-unemployment survey for 2004-05. The estimated model explains the casual worker â€“ regular worker dichotomy in manufacturing. The results show that labour market reforms tend to increase the creation of regular jobs, while import competition tends to raise casual employment among workers with education above primary. The results also show that education enhances the probability of getting a regular job.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Poonam Gupta, 2008.
"What Constrains Indian Manufacturing,"
- 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.
- Arup Mitra & Dibyendu Maiti, 2016.
"Skills, Informality, and Development,"
- Timothy Besley & Robin Burgess, 2002.
"Can labour regulation hinder economic performance? Evidence from India,"
LSE Research Online Documents on Economics
3779, London School of Economics and Political Science, LSE Library.
- Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 91-134.
- Besley, Timothy J. & Burgess, Robin, 2002. "Can Labour Regulation Hinder Economic Performance? Evidence from India," CEPR Discussion Papers 3260, C.E.P.R. Discussion Papers.
- Timothy Besley & Robin Burgess, 2002. "Can Labour Regulation Hinder Economic Performance? Evidence from India," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 33, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Ahsan, Ahmad & Pagés, Carmen, 2008.
"Are All Labor Regulations Equal? Evidence from Indian Manufacturing,"
IZA Discussion Papers
3394, Institute for the Study of Labor (IZA).
- Ahsan, Ahmad & Pagés, Carmen, 2009. "Are all labor regulations equal? Evidence from Indian manufacturing," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 62-75, March.
- Sean M. Dougherty, 2009.
"Labour Regulation and Employment Dynamics at the State Level in India,"
Review of Market Integration,
India Development Foundation, vol. 1(3), pages 295-337, December.
- Sean Dougherty, 2008. "Labour Regulation and Employment Dynamics at the State Level in India," OECD Economics Department Working Papers 624, OECD Publishing.
- Dibyendu Maiti & Kunal Sen, 2010. "The Informal Sector in India," Journal of South Asian Development, SAGE Publishing, vol. 5(1), pages 1-13, April.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:3125. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash)
If references are entirely missing, you can add them using this form.