Pathways to Jobs: A Review of India's Labour Reforms

Farzana Afridi (), Arjita Chandna, Aliva Smruti, Jayanta Talukder and Jyoti Thakur
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Farzana Afridi: Indian Statistical Institute
Arjita Chandna: National Council of Applied Economic Research
Aliva Smruti: National Council of Applied Economic Research
Jayanta Talukder: National Council of Applied Economic Research
Jyoti Thakur: National Council of Applied Economic Research

No 18824, IZA Discussion Papers from IZA Network @ LISER

Abstract: India faces a persistent challenge in generating formal sector, productive jobs for its growing workforce. The four new Labour Codes enacted in November 2025, seek to address the structural imbalance in its workforce by simplifying 29 pre-existing laws into a coherent framework to support job creation, formalisation and improve social protection of workers. In this paper, we unpack and examine each of the four Labour Codes within a unified framework, that includes discussion of the key legal provisions, the chronology of state-level implementation of the code and detailed exposition of potential impacts on employment and worker productivity. The main analytical inferences for each Code are derived from the existing theoretical and empirical research on labour reforms, with a specific focus on the experience of states within India. Based on the extensive review, the paper concludes by making specific policy recommendations on the effective implementation of the new labour codes.

Keywords: labor reforms; minimum wage; social security; industrial relations; occupational safety; employment; labour productivity; India (search for similar items in EconPapers)
JEL-codes: J31 J32 J41 J52 K31 (search for similar items in EconPapers)
Date: 2026-07
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