Estimating workers’ bargaining power and firms’ markup in India: Implications of reforms and labour regulations

Rupayan Pal and Udayan Rathore

Journal of Policy Modeling, 2016, vol. 38, issue 6, 1118-1135

Abstract: This paper simultaneously estimates workers’ bargaining power (WBP) and firm’s markup (FMU) in Indian manufacturing industries, using state-wise three-digit industry-level panel data for the period 1980–2007. It also examines the association of WBP and FMU with industrial deregulation, trade liberalisation and labour regulations. Results of the econometric analysis suggest that WBP is negatively associated with both industrial deregulations and trade liberalisation, but there is no significant association of FMU with these reforms. Further, pro-worker amendments to selected provisions of Industrial Disputes Act 1947, but not all, seem to enhance WBP to some extent. In light of these findings, policy implications are brought out.

Keywords: Workers’ bargaining power; Firms’ mark-up; Industrial deregulations; Trade liberalisation; Labour regulations (search for similar items in EconPapers)
JEL-codes: F16 J50 L13 L60 O14 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Estimating workers bargaining power and firms markup in India: Implications of reforms and labour regulations (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:38:y:2016:i:6:p:1118-1135

DOI: 10.1016/j.jpolmod.2016.09.002

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