K. N. Raj Library – Content Alerts

Home » India » Labor Regulations, Employment and Wages: Evidence from India’s Apparel Sector

Labor Regulations, Employment and Wages: Evidence from India’s Apparel Sector

Rana Hasan, Nidhi Kapoor, Aashish Mehta and Asha Sundaram

Asian Economic Policy Review, Volume 12, Issue 1, January 2017

While India is among the world’s largest producers and exporters of apparel products, the sector has not performed to its potential. This study analyzes why this might be so from the perspective of the structure of production in the sector, the most striking aspect of which is a firm size distribution heavily dominated by small firms. Using nationally representative firm-level and labor force survey data, we argue that the dominance of firms operating at scales too small to apply modern production and management technologies is one proximate reason for India’s relative underperformance. Further, we note that India’s labor regulations and the associated enforcement regime are important policy drivers of Indian firms’ tendency to avoid placing “too many workers under one roof”.

URL: http://onlinelibrary.wiley.com/doi/10.1111/aepr.12160/abstract

Courtesy: Wiley online library

Advertisements
%d bloggers like this: