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State Intervention and Labour Market in India: Issues and Options

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Abstract

State interventions into Labour policies in India are directed towards ensuring both job security and income security. In this paper we look at likely impact of such policies. The laws are found to serve the organised workers primarily while large masses of unorganised workers are without any security. To escape legislations, employers have substituted labour by capital, hired casual workers, and set up ancillary units. Consequently, output elasticity of employment has consistently declined and there is marked casualisation of workforce. Legislations have thus institutionalised and perpetuated labour market dualism. Reforms herein are necessary but should be implemented in a careful and phased manner to avoid deteriorating conditions in both the sectors in the name of uniformity. Linking retrenchment with Area Regeneration Programmes; upgrading employability quotient through training; allowing employers to transfer workers between units; providing easy credit and technical consultancy; and cooperative formation would help the workers.

Suggested Citation

  • Mukherjee, Dipa, 2005. "State Intervention and Labour Market in India: Issues and Options," MPRA Paper 4874, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4874
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    1. Mukherjee, Dipa, 2003. "The Changing World of Work and No-Work," MPRA Paper 4865, University Library of Munich, Germany.
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    Cited by:

    1. Majumder, Rajarshi, 2020. "Globalisation, technology and employment: looking back," MPRA Paper 110077, University Library of Munich, Germany.

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    More about this item

    Keywords

    Labour; State Intervention; Unorganised Workers; Employment Policy;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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