Global Monopsony, Contracting Practices and Labour Outcomes: A Study of Garment GVCs in India

Dev Nathan, S. Rahul (), Lakshmi Bhatia, Rekha Chakravarthi and Pradeepan Ravi
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Dev Nathan: Institute of Human Development
S. Rahul: Tata Institute of Social Sciences
Lakshmi Bhatia: Sustain Ability
Rekha Chakravarthi: Tata Institute of Social Sciences
Pradeepan Ravi: Cividep India

The Indian Journal of Labour Economics, 2024, vol. 67, issue 4, No 3, 993-1014

Abstract: Abstract This is a study of the contracting practices of lead firms, who are buyers of garments, in the global market. Based on a survey of garment manufacturers in three clusters in India it reveals the trend to falling margins, reduced lead times, etc. for these contracted suppliers. These contracting practices are shown to connect, often directly, with labour outcomes, such as low wages, high workloads and forced overtime, in supplier factories. Within a joint but differentiated responsibility between lead firms and garment manufacturers, it argues for the prime responsibility of lead firms to provide for adequate wages and reduce the pressure for forced overtime in supplier factories.

Keywords: Contracting practices; Monopsony; Wages; Garment industry; India (search for similar items in EconPapers)
JEL-codes: D42 D43 J42 J58 L11 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s41027-024-00546-w

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