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Labor Markets in India: Issues and Perspectives

In: Labor Markets in Asia

Author

Listed:
  • T. C. A. Anant

    (University of Delhi)

  • R. Hasan

    (Asian Development Bank)

  • P. Mohapatra

    (University of Delhi)

  • R. Nagaraj

    (Indira Gandhi Institute of Development Research)

  • S. K. Sasikumar

    (V. V. Giri National Labour Institute)

Abstract

Market-oriented structural reforms in India, begun in the 1980s and intensified in the 1990s, are widely believed to have put the economy on a path of higher growth. But there are concerns that outcomes in labor markets have not improved for large segments of the labor force. Many observers of India’s labor markets are bothered by the slow growth of employment in the organized sector—where the “good” jobs are. Despite growth of around 5% in GDP per capita between 1993/94 and 1999/2000, the share of the organized sector in total employment decreased from 7.3% to 7.1%.1 At the same time, jobs in the organized sector have themselves been undergoing a change, with contract labor getting a growing share of employment. More broadly, workers on daily or periodic contracts have increased their share of total wage and salary employment, in what some observers have described as the “casualization” of the Indian workforce.

Suggested Citation

  • T. C. A. Anant & R. Hasan & P. Mohapatra & R. Nagaraj & S. K. Sasikumar, 2006. "Labor Markets in India: Issues and Perspectives," Palgrave Macmillan Books, in: Jesus Felipe & Rana Hasan (ed.), Labor Markets in Asia, chapter 0, pages 205-300, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62738-3_5
    DOI: 10.1057/9780230627383_5
    as

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    Citations

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    Cited by:

    1. Nihar Shembavnekar, 2015. "Tariff Liberalisation, Labour Market Flexibility and Employment: Evidence from India," Working Paper Series 8115, Department of Economics, University of Sussex Business School.
    2. Gupta, Poonam & Hasan, Rana & Kumar, Utsav, 2009. "Big Reforms but Small Payoffs: Explaining the Weak Record of Growth and Employment in Indian Manufacturing," MPRA Paper 13496, University Library of Munich, Germany.
    3. Parwez, Sazzad, 2014. "Modified Labor Welfare Measures for Special Economic Zone & Implications," MPRA Paper 63835, University Library of Munich, Germany, revised 19 Dec 2014.
    4. Gupta, Poonam & Kumar, Utsav, 2010. "Performance of Indian Manufacturing in the Post Reform Period," MPRA Paper 24898, University Library of Munich, Germany.
    5. Suranjana Nabar-Bhaduri & Matías Vernengo, 2012. "Service-led growth and the balance of payments constraint in India: An unsustainable strategy," Working Paper Series, Department of Economics, University of Utah 2012_06, University of Utah, Department of Economics.
    6. M Parameswaran, 2021. "Trade Openness and Labour Market Unrest: Evidence from Indian Manufacturing Industry," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 345-373, June.
    7. Nihar Shembavnekar, 2018. "Did India’s economic reforms generate jobs? Essays on economic liberalisation, labour market flexibility and employment in the Indian manufacturing sector (1990-2006)," Economics PhD Theses 0917, Department of Economics, University of Sussex Business School.
    8. Woong Lee, 2017. "Trade Liberalization and the Aggregate Matching Function in India," Asian Economic Papers, MIT Press, vol. 16(1), pages 120-137, Winter/Sp.
    9. Hasan, Rana & Mitra, Devashish & Ranjan, Priya & Ahsan, Reshad N., 2012. "Trade liberalization and unemployment: Theory and evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 269-280.
    10. Rana Hasan & Karl Robert L. Jandoc, 2012. "Labor Regulations and the Firm Size Distribution in Indian Manufacturing," Working Papers 1118, School of International and Public Affairs, Columbia University, revised Jan 2012.
    11. Nihar Shembavnekar, 2019. "Economic Reform, Labour Markets and Informal Sector Employment: Evidence from India," Economies, MDPI, vol. 7(2), pages 1-42, June.
    12. Gopal Krishna Roy & Amaresh Dubey & Suresh Ramaiah, 2020. "Labour Market Flexibility and Changes in Employment: Spatial and Temporal Evidence from Indian Manufacturing," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 81-98, March.
    13. Choutagunta Abishek S., 2019. "Effects of Labour Regulation on Manufacturing Firms in India: A Leximetric Approach," Asian Journal of Law and Economics, De Gruyter, vol. 10(1), pages 1-15, April.
    14. 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.
    15. Nihar Shembavnekar, 2019. "Economic Reforms, Labour Markets and Formal Sector Employment: Evidence from India," Economies, MDPI, vol. 7(2), pages 1-42, April.
    16. Merfeld, Joshua D., 2019. "Spatially heterogeneous effects of a public works program," Journal of Development Economics, Elsevier, vol. 136(C), pages 151-167.
    17. Dibyendu Maiti & Kunal Sen, 2010. "The Informal Sector in India," Journal of South Asian Development, , vol. 5(1), pages 1-13, April.
    18. Ashok Kotwal & Bharat Ramaswami & Wilima Wadhwa, 2011. "Economic Liberalization and Indian Economic Growth: What's the Evidence?," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1152-1199, December.
    19. 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.
    20. Suranjana Nabar-Bhaduri, 2011. "No Easy Balancing Act: Reducing the Balance of Payments Constraint; Improving Export Competitiveness and Productivity; and Absorbing Surplus Labor The Indian Experience," Working Paper Series, Department of Economics, University of Utah 2011_12, University of Utah, Department of Economics.
    21. Matthew Embrey & Guillaume R. Frechette & Sevgi Yuksel, 2016. "Cooperation in the Finitely Repeated Prisoner's Dilemma," Working Paper Series 8616, Department of Economics, University of Sussex.
    22. J.Salcedo Cain & Rana Hasan & Devashish Mitra, 2010. "Trade Liberalization and Poverty Reduction: New Evidence from Indian States," Working Papers 3333, School of International and Public Affairs, Columbia University, revised Nov 2010.
    23. Merfeld, Joshua D, 2017. "Spatially Heterogeneous Effects of a Public Works Program," MPRA Paper 80630, University Library of Munich, Germany.

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