Labour Market Regulations and In-formalisation of Migrant Worker: Evidence from Indian Manufacturing Sector

Sofi Irfan Ahmad (), Khan Mohd Imran, Mohd Kunroo and Qayoom Khachoo ()
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Sofi Irfan Ahmad: School of Humanities and Social Sciences, Indian Institute of Technology, Indore, Madhya Pradesh, India
Khan Mohd Imran: Centre for Development Studies, Trivandrum, Kerala, India

Asian Journal of Law and Economics, 2016, vol. 7, issue 2, 169-195

Abstract: India is considered as one of the countries with a stringent body of labour laws. Though there is no lack of pro-worker employment protection legislation (EPL) and contract labour laws, the vulnerabilities of workers seem to be increasing rapidly in this neo-liberal phase of the global economy. Over the past two decades, there has been a rising trajectory of in-formalisation even in the organised manufacturing sector. Under this backdrop, we study the in-formalisation of migrant labour and try to find out whether EPL does protect the interests of migrant workers. We found that in-formalisation of migrant workers are higher in the states with relatively stringent labour laws. The finding of our econometric analysis indicates that informal migrant labour is used to evade the social security provisions laid down under the Industrial Disputes Act, 1947 among other legislation. Since informal workers fall outside the purview of most of the pro-workers labour laws, the trajectory of in-formalisation is likely to have serious repercussions on the welfare of workers especially that of migrants. Migrant labour, which occupies a substantive role in the contemporary labour markets, must be brought into an apt regulatory framework to address its vulnerabilities.

Keywords: employment protection legislation; informal employment; migration; rigidity (search for similar items in EconPapers)
JEL-codes: E20 E22 F22 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1515/ajle-2015-0022

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