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Size-Dependent Labour Regulations and Threshold Effects: The Case of Contract-worker Intensity in Indian Manufacturing

Author

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  • K.V. Ramaswamy

Abstract

Labour regulations like employment protection legislation in India are size-dependent rules and therefore constitute a basis for threshold effects. Firms could use non-permanent workers to stay below the legal establishment size threshold of 100 workers. This strategy is expected to cause the ratio of non-permanent to total workers to peak at size close to the legal threshold size. [IGIDR WP-2013-012]. URL:[http://www.igidr.ac.in/pdf/publication/WP-2013-012.pdf].

Suggested Citation

  • K.V. Ramaswamy, 2013. "Size-Dependent Labour Regulations and Threshold Effects: The Case of Contract-worker Intensity in Indian Manufacturing," Working Papers id:5388, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:5388
    Note: Institutional Papers
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    Cited by:

    1. Basu, Arnab K. & Chau, Nancy H. & Soundararajan, Vidhya, 2021. "Contract employment as a worker discipline device," Journal of Development Economics, Elsevier, vol. 149(C).
    2. Basu, Arnab K. & Chau, Nancy H. & Soundararajan, Vidhya, 2019. "Wage fairness in a subcontracted labor market," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 24-42.
    3. Kapoor Radhicka & Krishnapriya P. P., 2023. "Informalization of the formal sector: Evidence from India's manufacturing industries," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 14(1), pages 1-29, January.
    4. Chaurey, Ritam, 2015. "Labor regulations and contract labor use: Evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 114(C), pages 224-232.
    5. Radhicka Kapoor & P. P. Krishnapriya, 2019. "Explaining the contractualisation of India’s workforce," Working Papers id:12998, eSocialSciences.
    6. Radhicka Kapoor & P P Krishnapriya, 2019. "Explaining the contractualisation of India's workforce," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 369, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    7. Diti Goswami & Sourabh Bikas Paul, 2020. "Labor Reforms in Rajasthan: A boon or a bane?," Papers 2012.01016, arXiv.org.
    8. Srivastava, Ravi., 2016. "Structural change and non-standard forms of employment in India," ILO Working Papers 994897513402676, International Labour Organization.
    9. Ravi S. Srivastava, 2016. "Myth and reality of labour flexibility in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(1), pages 1-38, March.
    10. Hasan, Rana & Mehta, Aashish & Sundaram, Asha, 2021. "The effects of labor regulation on firms and exports: Evidence from Indian apparel manufacturing," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 183-200.

    More about this item

    Keywords

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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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