Reform and Productivity Growth in India: Issues and Trends in the Labour Markets

[BOOK DESCRIPTION]

During the last two decades, India has experienced a high growth rate, but the contribution from productivity growth and technological progress has been very low. This has resulted in a poor performance in the employment generation in the formal sector, and this book examines this phenomenon and the Indian growth pattern. Using primary and secondary data, the book looks at the impact of economic reform on technological change and total productivity growth, and in turn its impact on the labour market. It examines the effect of trade reform on the form and functioning of labour markets, and goes on to look at the impact of the global financial crisis on the Indian labour market. Offering interesting modelling exercises and empirical verifications that bring fresh ideas and new content, this book is of interest to academics in the fields of development economics, international economics and South Asian studies.

[TABLE OF CONTENTS]

 List of figures                            xv
        List of tables                             xvi
Foreword                                           xviii
Preface                                            xix
    1 Introduction                                 1    (32)
      1.1 Introduction                             1    (2)
      1.2 Overview of economic reform in India     3    (3)
      1.3 Growth and employment in India           6    (7)
      1.4 Labour legislation and labour market     13   (2)
      characteristics in India
      1.5 Productivity growth and employment:      15   (12)
      conceptual issues
      1.6 Issues and chapterisation                27   (6)
    2 Market distortions and productivity growth   33   (20)
      2.1 Introduction                             33   (2)
      2.2 Productivity growth in India:            35   (1)
      experiences
      2.3 Theoretical framework                    36   (6)
      2.4 Productivity growth in India             42   (7)
      2.5 Productivity growth and employment       49   (1)
      2.6 Concluding remarks                       50   (3)
    3 Trade reform and productivity growth         53   (22)
      3.1 Introduction                             53   (2)
      3.2 Trade and productivity growth in         55   (4)
      India: what we know
      3.3 Market imperfections, trade and          59   (13)
      productivity growth in India
      3.4 Concluding remarks                       72   (3)
    4 Labour market flexibility and                75   (21)
    productivity growth
      4.1 Introduction                             75   (3)
      4.2 Contractualisation in India              78   (5)
      4.3 Productivity differential between        83   (5)
      types of labours
      4.4 Contractualisation and productivity      88   (4)
      growth in India
      4.5 Concluding remarks                       92   (4)
        Appendix A4                                93   (3)
    5 Informal sector, subcontracting and          96   (18)
    productivity growth
      5.7 Introduction                             96   (3)
      5.2 R&D and productivity                     99   (1)
      5.3 Theoretical framework                    100  (8)
      5.4 Informalisation and productivity         108  (3)
      growth in the formal sector
      5.5 Concluding remarks                       111  (3)
    6 Foreign competition, bargaining power and    114  (30)
    cost-price margin
      6.1 Introduction                             114  (6)
      6.2 The model                                120  (15)
      6.3 Trade and labour market adjustments      135  (5)
      6.4 Concluding remarks                       140  (4)
    7 Financial crisis and labour market           144  (18)
    adjustment
      7.1 Introduction                             144  (3)
      7.2 Effects of financial crisis in the       147  (2)
      organised sector in India
      7.3 Change in sectoral composition of        149  (1)
      workforce
      7.4 Change in types of employment            150  (2)
      7.5 Employment in export-and                 152  (7)
      non-export-specific units
      7.6 Effect of the financial crisis on        159  (1)
      employee cost
      7.7 Concluding remarks                       160  (2)
    8 Contractualisation and industrialisation     162  (19)
      8.1 Introduction                             162  (3)
      8.2 Profiles of the sample industries        165  (2)
      8.3 Production processes and integration     167  (4)
      level
      8.4 Labour contracts, flexibility and        171  (7)
      issues of industrialisation
      8.5 Concluding remarks                       178  (3)
    9 Institutions and issues of industrial        181  (15)
    growth in India
      9.1 Introduction                             181  (3)
      9.2 Relationship between investment          184  (7)
      climate and industrial growth
      9.3 Institutional factors affecting          191  (3)
      industrialisation
      9.4 Concluding remarks and policy            194  (2)
      implications
    10 Summary and concluding observations         196  (10)
      10.1 Summary                                 196  (5)
      10.2 Concluding observations                 201  (5)
Bibliography                                       206  (11)
Index