Labour Market Flexibility in Indian Industry: A Critical Survey of the Literature

Bhattacharjea, Aditya

doi:10.2139/ssrn.3745120

Cited by 5 publications

(1 citation statement)

References 64 publications

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“…Frequent additional defects are their incompleteness, variability depending on the environmental conditions and difference in their functioning in individual countries (i.e., co-existing indicators in different countries have not only different strength of influence but also direction). These notable methodological weaknesses are indicated in papers by Kässi and Lehdonvirta [41], Klau and Mittelstadt [37], Auer [42] and Bhattacharjea [43]. The research has focused on devoting new challenges in creating labour market indicators using currently available data [44].…”

Section: Theoretical Considerationsmentioning

confidence: 99%

Evaluating Labour Market Flexibility Using the TOPSIS Method: Sustainable Industrial Relations

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This study evaluates labour market flexibility using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), a multi-criteria decision analysis (MCDA) method. TOPSIS is employed by comparing spatial (i.e., different countries) and temporal (i.e., long-time horizon) terms. Sustainable industrial relations processes are considered in shaping the flexibility of the labour market in 15 European Union Member States from 2009 to 2018. Countries are grouped into classes to provide a basis for benchmarking results against social and employment policies implemented at the national level. A five-step quantitative MCDA method is formulated using published data from the Organisation for Economic Co-operation and Development. The results indicate that the TOPSIS method is an appropriate approach for measuring labour market flexibility internationally. Moreover, in relation to workforce phenomena, the findings show that the method offers the possibility of examining the impact of particular factors related to social and employment policies of a country in terms of sustainable development and socioeconomic growth. The lack of precision tools to forecast the development of national and transnational labour markets—particularly during the COVID-19 era—highlights the importance of such a method for workforce planners and policymakers. Developing sustainable industrial relations in terms of associated national externalities is the motivation of the research.

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Section: Theoretical Considerationsmentioning

confidence: 99%

Evaluating Labour Market Flexibility Using the TOPSIS Method: Sustainable Industrial Relations

et al. 2022

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Endogeneity-corrected stochastic frontier with market imperfections

Maiti,

Neogi

2024

Empir Econ

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This work provides a method of endogeneity corrected stochastic frontier for efficiency and productivity growth estimation in presence of product and labour market imperfections. The imperfections generate efficiency losses and hence affect the productivity estimates. A modified frontier function based on Cobb-Dauglus form that represents in terms of residue per unit of capital helps estimating the terms containing product and labour market imperfections. To correct the endogeneity issue for input selection, the estimation involves three-stages approaches. First, by applying Battese and Coelli (1992) error component model, the one-sided error is estimated. Second, the Levinsohn and Petrin (2003) approach is applied on the frontier values to estimate efficiency parameters that eliminates the input selection bias by using material cost as a proxy. Third, the endogeneity corrected technical efficiency is recovered from the modified one-sided error. The analysis of threedigit level of Indian industrial data across 17 major states for the period 2008-2016 portrays a strong presence of product and labour market imperfections. While the product market efficiency has deteriorated a bit at the aggregate level, it shows a marginal improvement in the allocative efficiency for the labour market. However, the efficiency level varies across industries. The productivity growth derived by adding the components of efficiency changes is similar to the Solow residual growth.

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Labour market flexibility in Indian manufacturing: A critical survey of the literature

Bhattacharjea

2021

International Labour Review

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A growing literature seeks to establish a relationship between India's supposedly “restrictive” labour laws and its poor performance on a range of industrial and social indicators. After providing an overview of this literature, this article shows that multiple errors were made in the foundational papers that constructed indices measuring interstate differences in labour regulation. These indices were then misinterpreted as measures of labour market flexibility. The literature is also marred by econometric problems and by difficulties involved in replicating the analysis with corrected and updated indices. The author concludes by summarizing evidence of deteriorating labour market outcomes for workers in Indian manufacturing.

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Labour Market Flexibility in Indian Industry: A Critical Survey of the Literature

Cited by 5 publications

References 64 publications

Evaluating Labour Market Flexibility Using the TOPSIS Method: Sustainable Industrial Relations

Evaluating Labour Market Flexibility Using the TOPSIS Method: Sustainable Industrial Relations

Endogeneity-corrected stochastic frontier with market imperfections

Labour market flexibility in Indian manufacturing: A critical survey of the literature

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