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Job Security Regulations and Worker Turnover : A Study of the Indian Manufacturing Sector

Author

Listed:
  • Sudipta Dutta Roy

    (National Stock Exchange of India Ltd., Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai-400 051)

Abstract

Job security regulations were introduced in the organised labour market in India with the implementation of the Industrial Disputes (Amendment) Act 1976, subsequently made more stringent via the Industrial Disputes (Amendment) Act 1982. Earlier studies, concentrating mostly on employment and wages, have not arrived at a consensus on the impact of the regulations. The present study provides the first exploratory analysis along a third dimension of labour market flexibility - the ease with which employers use accessions and separations as instruments to bring about desired changes in employment. We provide direct evidence of the adverse impact of the regulations on labour market flexibility.

Suggested Citation

  • Sudipta Dutta Roy, 2002. "Job Security Regulations and Worker Turnover : A Study of the Indian Manufacturing Sector," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 37(2), pages 141-162, July.
    • Handle: RePEc:dse:indecr:v:37:y:2002:i:2:p:141-162
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    Citations

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    Cited by:

    1. K. R. Shyam Sundar, 2017. "A different reforms agenda: Reform of trade unions!," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(2), pages 233-252, June.
    2. 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.
    3. 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.

    More about this item

    Keywords

    Accessions; Separations; Job Security Regulations;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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