Indian Journal of Industrial Relations: Economics & Social Dev.

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Wage-Productivity Linkages in Indian Industries


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1 Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore 641043, India
     

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This paper examines wage- productivity linkages in rural, urban and aggregate industries of India covering the period from1998-99 to 2007-08. In order to clearly understand the links between wages and productivity in selected industries, the study had used a simple step-wise regression model. Based on the results obtained it was suggested that nation-wide linkage of wages with productivity may be the best option for neutralization of a rise in the cost of living. The productivity of capital and total factor productivity may be taken into account along with labour productivity while granting wage increase so that wage increase is not of inflationary nature. Effective utilization of capital should be the correct criterion for a country like India where capital is a scarce factor.
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  • Laxmi Narayan (2003), Productivity and Wages in Indian Industries, Discovery Publishing House, New Delhi.

  • Krishnamurthy, V. (2007), “Manufacturing Sector in India: A Review”, Industrial Herald, (21)(2) : 43-57.


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  • Wage-Productivity Linkages in Indian Industries

Abstract Views: 319  |  PDF Views: 0

Authors

M. Manonmani
Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore 641043, India

Abstract


This paper examines wage- productivity linkages in rural, urban and aggregate industries of India covering the period from1998-99 to 2007-08. In order to clearly understand the links between wages and productivity in selected industries, the study had used a simple step-wise regression model. Based on the results obtained it was suggested that nation-wide linkage of wages with productivity may be the best option for neutralization of a rise in the cost of living. The productivity of capital and total factor productivity may be taken into account along with labour productivity while granting wage increase so that wage increase is not of inflationary nature. Effective utilization of capital should be the correct criterion for a country like India where capital is a scarce factor.

References