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There is an intense debate on the impact of labour regulation in India today. Labour regulation in India differ state-wise and apply differently across types of workers (both regular and contract workers). This paper examines the joint effects of Employment Protection Legislation (EPL) and variable enforcement intensity on the growth in a size of temporary contract workers in the organised manufacturing sector. It uses the state level amendments to Industrial Dispute Act of 1947, and the average size of total number of labour inspectors for each state, as independent variables to capture the variation in labour regulations and enforcement intensity across thirty-one Indian states for the period 2000-2007. This paper argues that, average Indian firms located in strict EPL states hire differentially more temporary contract workers as compare to regular workers in response to variable enforcement intensity. Among other findings, the empirical analysis shows that firms prefer to employ excessive number of contract workers to circumvent firing and overall compliance costs of regular workers as stipulated by the Indian labour laws. Our results are robust to alternative specifications.

In the absence of a vaccine for combating the novel coronavirus (COVID-19), countries globally are going in for a national lockdown and are mandating all people to stay indoors, and, if out in the public domain, to maintain 2-m distance, wear masks and wash hands with soap to mitigate the spread of the virus and its community transmission. The significance of the much neglected public health measures to deal with communicable diseases has come back to haunt several countries with a large proportion of people who are poor and who live in dense settlements with low levels of public provisioning of basic amenities. This article attempts to examine the feasibility of the recommended physical distancing using data from a national level sample from India. With the aid of data on parameters such as access to water, toilet, electricity, mobile phone and secure employment from the 75th and 76th National Sample Survey Rounds of 2017–2018, a Physical Distancing Readiness Index has been constructed. The performance of 27 states and 2 union territories of India is examined using the Index. This study examines the statistical correlation of a Physical Distancing Readiness Index to the incidence rate and case fatality ratio of COVID-19. Our results show that the poorer households are unequally endowed for observing physical distancing and ensuring the effective implementation of lockdown, which leads to disproportionate increase in the incidence rate and case fatality ratio, keeping other factors constant.

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