Labour Market Regulations and In-formalisation of Migrant Worker: Evidence from Indian Manufacturing Sector

Abstract

India is considered as one of the countries with a stringent body of labour laws. Though there is no lack of pro-worker employment protection legislation (EPL) and contract labour laws, the vulnerabilities of workers seem to be increasing rapidly in this neo-liberal phase of the global economy. Over the past two decades, there has been a rising trajectory of in-formalisation even in the organised manufacturing sector. Under this backdrop, we study the in-formalisation of migrant labour and try to find out whether EPL does protect the interests of migrant workers. We found that in-formalisation of migrant workers are higher in the states with relatively stringent labour laws. The finding of our econometric analysis indicates that informal migrant labour is used to evade the social security provisions laid down under the Industrial Disputes Act, 1947 among other legislation. Since informal workers fall outside the purview of most of the pro-workers labour laws, the trajectory of in-formalisation is likely to have serious repercussions on the welfare of workers especially that of migrants. Migrant labour, which occupies a substantive role in the contemporary labour markets, must be brought into an apt regulatory framework to address its vulnerabilities.

Does Social Capital Improve the Effectiveness of Public Service? An Insight from Rural-to-Urban Migrants in China

“…It is more useful for migrants to employ their social networks to get educational services for their children and employment opportunities than other services, such as health care, residence, and pensions. These findings are consistent with many previous studies (Chuatico & Hann, 2022 ; Rayn, 2011 ; Sofi et al, 2016 ).…”

“…It is believed that traditional manufacturing workers are mostly assembly line workers with less social contact in their daily work. So there is more room for improving their social capital to increase their satisfaction with basic public services (Sofi et al, 2016 ). On the contrary, service industry migrants have more daily contact with people outside their ethnic-oriented group or place of origin and get more comprehensive access to information and opportunities.…”

What Role Does EPL Play in Wage Determination under Segmented Labour Markets? A State-level Analysis from India’s Formal Manufacturing Sector

“…Besides, there is evidence of stealthy labour reforms, which have brought additional flexibility to India's labour market. Further, Sofi et al (2016) suggest that contractualisation may not necessarily be a consequence of labour laws; rather, it is a strategy to weaken workers' wage bargaining power so as to exploit them. Contrary to the neo-liberal line of thought, a recent empirical study finds that import penetration, profits and higher wage gaps between permanent and contract workers are among the significant factors explaining contractualisation in Indian firms (Singh, 2022).…”

“…The empirical studies published in the recent years from India include Hasan et al (2021), Roy et al (2020), Schwab (2020), Roychowdhury (2018), Singh et al (2019), Sofi and Kunroo (2018), Sofi et al (2016), Sofi and Sharma (2015a and 2015b), Sapkal (2016), Chaurey (2015), Roychowdhury (2014), Adhvaryu et al (2014), Dougherty et al (2013/2014), Maiti (2013), Saha et al (2013), Goldar and Agarwal (2012), Deakin and Sarkar (2011), Fragenas (2010) and Besley and Burgess (2004). These studies have generally focused on productivity, output and the labour demand effects of EPL.…”