Job Security Regulations and Worker Turnover: A Study of the Indian Manufacturing Sector

Sudipta Dutta Roy
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Sudipta Dutta Roy: National Stock Exchange of India Ltd., Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai-400 051

Indian Economic Review, 2002, vol. 37, issue 2, 141-162

Abstract: Job security regulations were introduced in the organised labour market in India with the implementation of the Industrial Disputes (Amendment) Act 1976, subsequently made more stringent via the Industrial Disputes (Amendment) Act 1982. Earlier studies, concentrating mostly on employment and wages, have not arrived at a consensus on the impact of the regulations. The present study provides the first exploratory analysis along a third dimension of labour market flexibility - the ease with which employers use accessions and separations as instruments to bring about desired changes in employment. We provide direct evidence of the adverse impact of the regulations on labour market flexibility.

Keywords: Accessions; Separations; Job Security Regulations (search for similar items in EconPapers)
JEL-codes: C33 J63 (search for similar items in EconPapers)
Date: 2002
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