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Pathways to Jobs: A Review of India's Labour Reforms

Author

Listed:
  • Afridi, Farzana

    (Indian Statistical Institute)

  • Chandna, Arjita

    (National Council of Applied Economic Research)

  • Smruti, Aliva

    (National Council of Applied Economic Research)

  • Talukder, Jayanta

    (National Council of Applied Economic Research)

  • Thakur, Jyoti

    (National Council of Applied Economic Research)

Abstract

India faces a persistent challenge in generating formal sector, productive jobs for its growing workforce. The four new Labour Codes enacted in November 2025, seek to address the structural imbalance in its workforce by simplifying 29 pre-existing laws into a coherent framework to support job creation, formalisation and improve social protection of workers. In this paper, we unpack and examine each of the four Labour Codes within a unified framework, that includes discussion of the key legal provisions, the chronology of state-level implementation of the code and detailed exposition of potential impacts on employment and worker productivity. The main analytical inferences for each Code are derived from the existing theoretical and empirical research on labour reforms, with a specific focus on the experience of states within India. Based on the extensive review, the paper concludes by making specific policy recommendations on the effective implementation of the new labour codes.

Suggested Citation

  • Afridi, Farzana & Chandna, Arjita & Smruti, Aliva & Talukder, Jayanta & Thakur, Jyoti, 2026. "Pathways to Jobs: A Review of India's Labour Reforms," IZA Discussion Papers 18824, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18824
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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