Indian Journal of Industrial Relations: Economics & Social Dev.

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Wage Disadvantage of Contract Workers in Indian Manufacturing Sector


Affiliations
1 XLRI, Xavier School of Management, India
2 Maharashtra National Law University, Mumbai, India
     

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The rising wage inequality between regular and contract workers in the manufacturing sector in India is posing serious challenges to the government’s reform agenda as it is externalizing the tremendous social and political costs for undertaking pro-market reforms. This paper seeks to analyze the trends in the wage inequality between regular and contract workers in the Indian manufacturing during 2000-2013.It was found that wage differentials are not only higher but widening over the years though slightly. Pro-worker regulatory climate in fact protects the interests of precarious workers like the contract workers. The government must focus on redesigning labor policies in conformity with ILO standards and decent work programs that will promote both efficiency and equity in labor market in India.
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  • Wage Disadvantage of Contract Workers in Indian Manufacturing Sector

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Authors

K. R. Shyam Sundar
XLRI, Xavier School of Management, India
Rahul Suresh Sapkal
Maharashtra National Law University, Mumbai, India

Abstract


The rising wage inequality between regular and contract workers in the manufacturing sector in India is posing serious challenges to the government’s reform agenda as it is externalizing the tremendous social and political costs for undertaking pro-market reforms. This paper seeks to analyze the trends in the wage inequality between regular and contract workers in the Indian manufacturing during 2000-2013.It was found that wage differentials are not only higher but widening over the years though slightly. Pro-worker regulatory climate in fact protects the interests of precarious workers like the contract workers. The government must focus on redesigning labor policies in conformity with ILO standards and decent work programs that will promote both efficiency and equity in labor market in India.

References