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ID139484
Title ProperLabour regulations, contractualization and industrial performance
Other Title Informationthree-dimensional panel evidences from Indian manufacturing sector
LanguageENG
AuthorSofi, Irfan Ahmad ;  Sharma, Pritee
Summary / Abstract (Note)This study analyzes the impact of spiralling growth in usage of contractual labour, in the context of stringent pro-worker labour regulations, on industrial labour productivity and employment generation. We obtain a quantitative measure of ‘stringency of labour regulations’ by applying majority rule on three different measures used in the literature. The results show that average labour productivity increases with the increase in the ratio of permanent workers to contractual workers, unless the industries are not operating in states having rigid/pro-worker labour regulations—which implies a negative impact of contractualization on labour productivity. Besides, the results show that the rigid/pro-worker labour regulations have negative impact on employment generation; it is especially discernible in labour-intensive industries.
`In' analytical NoteSouth Asia Economic Journal Vol. 16, No.1; Mar 2015: p.122-144
Journal SourceSouth Asia Economic Journal 2015-06 16, 1
Key WordsLabour Productivity ;  Employment ;  Contractualization ;  Employment Protection Legislation