EconPapers    
Economics at your fingertips  
 

Labour Market Institutions, Industry Structure and Productivity in Indian Manufacturing Sector

Pradip Kumar Biswas () and Saurabh Bandyopadhyay ()
Additional contact information
Pradip Kumar Biswas: Delhi University

The Indian Journal of Labour Economics, 2021, vol. 64, issue 4, No 9, 999-1021

Abstract: Abstract The present paper provides an evidence-based enquiry into the causes of low productivity, polarised industry structure and their relations with labour market institutions in major states of India. Unit level data of NSSO’s 73rd Round of Unincorporated Enterprise Survey for the year 2015–16 and ASI 2015–16 unit level data have been used to estimate relevant parameters and these are cross-checked by using NSSO’s 67th Round of Unincorporated Enterprise Survey for the year 2009–10 and ASI 2009–10. The debate that took place during the late 1990s and early years of the first decade of the twenty-first century was mainly centred on explaining the reasons for low productivity syndrome as pro-labour and anti-labour policies nurturing or weakening particular labour market institutions. However, the present study shows that the broader institutional environments, which are very sticky unless the state consciously makes attempts to change through mass involvement and strict laws, under which labour market institutions operate, state policies are framed and implemented play the most determining role in the evolution of industry structure and the performance of the industry. Pro-business institutional environments are lacking and anti-establishment institutions are prominent in many states where mobility of micro and small firms along the size-ladder has been highly restricted which results in polarised structure or the so-called phenomenon of “missing middle” and low productivity of a large majority of the workers.

Keywords: Industry structure; Institutions; Productivity; Micro-enterprise (search for similar items in EconPapers)
JEL-codes: J24 L11 O25 O43 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41027-021-00339-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ijlaec:v:64:y:2021:i:4:d:10.1007_s41027-021-00339-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41027

DOI: 10.1007/s41027-021-00339-5

Access Statistics for this article

The Indian Journal of Labour Economics is currently edited by Alakh Sharma

More articles in The Indian Journal of Labour Economics from Springer, The Indian Society of Labour Economics (ISLE) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-11-13
Handle: RePEc:spr:ijlaec:v:64:y:2021:i:4:d:10.1007_s41027-021-00339-5