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Cost, risk, and labor markets: the state and sticky institutions in global production networks

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  • Srinivas, Smita

Abstract

This article posits that there is no a priori reason that industrial upgrading and market expansion leads to greater social protections or better regulation. I ask three questions and attempt a conceptual framework for institutions and their broader spatial evolution. A firm’s regional risk ecology ties in insightful ways for primary-secondary workers, insider-outsiders, and to the emergence of social protections. I propose a typology of place, work, and work-place institutions that mitigate risks and mediate costs. Industrial upgrading is a work-place based process; evolution of “informality”, wider social protections, and labour regulations can be assessed accordingly.

Suggested Citation

  • Srinivas, Smita, 2009. "Cost, risk, and labor markets: the state and sticky institutions in global production networks," MPRA Paper 52690, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52690
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    File URL: https://mpra.ub.uni-muenchen.de/52690/1/MPRA_paper_52690.pdf
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    References listed on IDEAS

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    1. Paula Kantor & Padmaja Nair, 2003. "Risks and responses among the urban poor in India," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 957-967.
    2. Sotarauta, Markku & Srinivas, Smita, 2006. "Co-evolutionary policy processes: Understanding innovative economies and future resilience," MPRA Paper 52689, University Library of Munich, Germany.
    3. Peter Knorringa & Lee Pegler, 2006. "Globalisation, Firm Upgrading And Impacts On Labour," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(5), pages 470-479, December.
    4. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 91-134.
    5. Srinivas, Smita, 2007. "Urban labour markets in the 21st century: dualism, regulation and the role(s) of the State," MPRA Paper 53099, University Library of Munich, Germany.
    6. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-239, May.
    7. Srinivas, Smita, 2010. "Industrial welfare and the state: nation and city reconsidered," MPRA Paper 52651, University Library of Munich, Germany.
    8. Dani Rodrik, 1997. "Trade, Social Insurance, and the Limits to Globalization," NBER Working Papers 5905, National Bureau of Economic Research, Inc.
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    1. Srinivas, Smita, 2010. "Industrial welfare and the state: nation and city reconsidered," MPRA Paper 52651, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

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