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Liberalization and labour: the effect on formal sector employment

Author

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  • Uma Kambhampati

    (School of Development Studies, University of East Anglia, Norwich, UK)

  • Jude Howell

    (School of Development Studies, University of East Anglia, Norwich, UK)

Abstract

This paper explores the impact of liberalization in India on formal sector employment in the cotton textile industry. It draws upon the results of field-work carried out primarily in Ahmedabad but also in Bombay, Delhi and Coimbatore between September and November 1996. This field-work included a survey of 101 employed mill workers in 16 mills in Ahmedabad, covering issues such as wages, job security and health and safety. The findings indicate that restructuring has led to a decline in employment levels in composite mills in the cotton textile industry in India through closure, downsizing and the shift towards more capital-intensive technologies. As wages are determined within an institutional setting, it was found that there was no significant variation across mills nor over time. Additionally, since many of the conditions of employment are determined by legislation, they apply uniformly across companies and have not altered in the post-liberalization context. However, the increased capital-intensity of production has resulted in an improvement in health and safety conditions within the mills, at least with respect to occupational hazards which have typified this industry in the past. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Uma Kambhampati & Jude Howell, 1998. "Liberalization and labour: the effect on formal sector employment," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(4), pages 439-452.
    • Handle: RePEc:wly:jintdv:v:10:y:1998:i:4:p:439-452
    DOI: 10.1002/(SICI)1099-1328(199806)10:4<439::AID-JID537>3.0.CO;2-D
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    Citations

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    Cited by:

    1. George, Justine, 2014. "Informal Sector in India: A Review," MPRA Paper 70602, University Library of Munich, Germany.
    2. repec:ilo:ilowps:351624 is not listed on IDEAS
    3. Uma S. Kambhampati & Ashok Parikh, 2005. "Has liberalization affected profit margins in Indian Industry?," Bulletin of Economic Research, Wiley Blackwell, vol. 57(3), pages 273-304, July.
    4. Asiedu, Kofi Fred & Folmer, Henk, 2007. "Does Privatization Improve Job Satisfaction? The Case of Ghana," World Development, Elsevier, vol. 35(10), pages 1779-1795, October.
    5. Nigel L. Driffield & Uma S. Kambhampati, 2003. "Trade Liberalization and the Efficiency of Firms in Indian Manufacturing," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 419-430, August.
    6. Gupta, Avnesh Kumar, 2014. "Trade Liberalisation and Its Impact on Employment: An Analysis of Indian Experiences (With Special References of Indian Manufacturing Industries)," MPRA Paper 80030, University Library of Munich, Germany, revised 01 Mar 2014.
    7. Dejillas, Leopoldo J., 2000. "Globalization, gender and employment in the informal economy : the case of the Philippines," ILO Working Papers 993516243402676, International Labour Organization.

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