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Cost, risk, and labor markets: the state and sticky institutions in global production networks

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  • Srinivas, Smita

Abstract

This article posits that there is no a priori reason that industrial upgrading and market expansion leads to greater social protections or better regulation. I ask three questions and attempt a conceptual framework for institutions and their broader spatial evolution. A firm’s regional risk ecology ties in insightful ways for primary-secondary workers, insider-outsiders, and to the emergence of social protections. I propose a typology of place, work, and work-place institutions that mitigate risks and mediate costs. Industrial upgrading is a work-place based process; evolution of “informality”, wider social protections, and labour regulations can be assessed accordingly.

Suggested Citation

  • Srinivas, Smita, 2009. "Cost, risk, and labor markets: the state and sticky institutions in global production networks," MPRA Paper 52690, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52690
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    File URL: https://mpra.ub.uni-muenchen.de/52690/1/MPRA_paper_52690.pdf
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    References listed on IDEAS

    as
    1. Sotarauta, Markku & Srinivas, Smita, 2006. "Co-evolutionary policy processes: Understanding innovative economies and future resilience," MPRA Paper 52689, University Library of Munich, Germany.
    2. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 91-134.
    3. Dani Rodrik, 1997. "Trade, Social Insurance, and the Limits to Globalization," NBER Working Papers 5905, National Bureau of Economic Research, Inc.
    4. Paula Kantor & Padmaja Nair, 2003. "Risks and responses among the urban poor in India," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 957-967.
    5. Peter Knorringa & Lee Pegler, 2006. "Globalisation, Firm Upgrading And Impacts On Labour," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(5), pages 470-479, December.
    6. Srinivas, Smita, 2007. "Urban labour markets in the 21st century: dualism, regulation and the role(s) of the State," MPRA Paper 53099, University Library of Munich, Germany.
    7. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-239, May.
    8. Srinivas, Smita, 2010. "Industrial welfare and the state: nation and city reconsidered," MPRA Paper 52651, University Library of Munich, Germany.
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    1. Srinivas, Smita, 2010. "Industrial welfare and the state: nation and city reconsidered," MPRA Paper 52651, University Library of Munich, Germany.

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    More about this item

    Keywords

    Institutions; regulation; social protection; regional risk ecology; co-evolution; construction sector;
    All these keywords.

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

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