By Arup Mitra

The ebook explores, for India and different constructing international locations, the aptitude function the geared up production quarter may possibly play as an engine of development. along development, can this zone generate sufficient employment possibilities to facilitate the move of labour from the agriculture quarter? The ebook identifies the most important constraints that bring about restricted call for for labour within the organised production quarter. past technological features, ability scarcity is a crucial issue, leading to gradual labour absorption. additional, the labour marketplace legislation aren't unavoidably the foundation reason for slow employment development within the organised production area. the advance of applied sciences which are acceptable for labour surplus international locations like India is instrumental to employment production. even though innovation is usually assumed to be capital-intensive in nature, the publication argues that innovation however has a good impact on employment in absolute phrases. finally, the most coverage concerns are highlighted when it comes to the concern that are supposed to be assigned to industries that can give a contribution to employment progress and ability formation for making improvements to the employability of the to be had labour strength, and to which thoughts may be pursued, with a particular specialise in pro-poor progress objectives.

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Though deregulation might be desirable in the context of increasing integration of a particular economy with the global economy, any reform in the labour market, the study argues, needs to be a gradualist one and it has to be accompanied by appropriate 22 Industry-Led Growth: Issues and Facts social safety nets and some institutional innovations that help the job losers in the process of labour reallocation. Hasty reforms would only reduce the social welfare. Moreover, as the organized labour market in several developing countries like India account for only a small fraction of the work force, “it is legitimate to wonder if labour market reform can be of much consequence in such context” (ILO-SAAT 1996).

Even within the ASI sector, the proportion of contractual workers to total workers (directly employed plus those appointed through the contractors) has increased steadily over time. Second, in many industries the proportion has been extremely high. The third observable pattern relates to the ratio of female to male workers in the category of directly recruited workers, which is significant in a group of industries. Since female wages are usually believed to be lower than that of the males, feminization of the work force may be treated as an indicator of labour market flexibility that the employers have chosen as a means to reduce labour cost.

25 Since wages do not constitute a large component of the total cost a more careful analysis has to be pursued to identify what restricts industrial expansion and employment creation rather than simply blaming the labour laws. 9 in the appendix. 3 at the aggregate level: at the disaggregated level in 24 The ratio of trade union members as a percentage of total paid employees has been calculated by ILO Bureau of Statistics. ), 343 (Manufacture of parts for motor vehicles and their engines), 351 (Building and repair of ships and boats), 352 (Manufacture of railway and tramway locomotives), 353 (Manufacture of aircraft and spacecraft), 361 (Manufacture of furniture), 371 (Recycling of metal waste and scrap) and 372 (Recycling of non-metal waste and scrap).

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