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Globalisation and labour market flexibility: a study of contractual employment in India

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  • Meenakshi Rajeev

Abstract

Purpose - The purpose of this paper is to understand the status of a class of non‐permanent labour in the globalised era in India. Design/methodology/approach - To understand this the paper uses both secondary level information and primary data collected through a survey. Secondary level data are analysed using a panel data model. Here, the hypothesis is: contribution of contract labour to production is greater than that of the regular employees. The primary level survey is conducted to know whether they are exploited due to their non‐permanent stature. Findings - It is observed from secondary data analysis that the hypothesis is not rejected. Contract labour makes a significant contribution to production, while the regular employees do not. Primary survey also shows that they are exploited in many ways including through non‐payment of minimum wages. Practical implications - The paper indicates that, while regulations are in place, they are abused and hence it is the implementation part on which government needs to focus. Originality/value - Analysis shows how rationalization of employment does not take place due to labour regulations for the regular employees. It also brings to light through primary survey various lacunae in the implementation of the Contract Labour Act. Since survey of such labour class is difficult there are limited studies in this field.

Suggested Citation

  • Meenakshi Rajeev, 2009. "Globalisation and labour market flexibility: a study of contractual employment in India," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 8(2), pages 168-183, October.
    • Handle: RePEc:eme:ijdipp:v:8:y:2009:i:2:p:168-183
    DOI: 10.1108/14468950910997701
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    Citations

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    Cited by:

    1. Nur FERIYANTO & Jaka SRIYANA, 2016. "Labor Absorption Under Minimum Wage Policy In Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-21, June.
    2. Landau, Ingrid & Mahy, Petra. & Mitchell, Richard., 2015. "The regulation of non-standard forms of employment in India, Indonesia and Viet Nam," ILO Working Papers 994888153402676, International Labour Organization.
    3. Bir Singh, 2022. "Contractualisation in India’s manufacturing industry and the economic reforms of the early 1990s: an analysis based on ASI data," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 135-157, February.
    4. Subir Bikas Mitra & Piyali Ghosh, 2022. "Engaging Contract Labour: Learnings from Landmark Judgements," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(1), pages 97-118, February.
    5. Nitin Gupta, 2011. "The Differential Effects of Financial Development on India's Industrial Performance," ASARC Working Papers 2011-12, The Australian National University, Australia South Asia Research Centre.

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