Labour Market Rigidities in India

Type Working Paper - Review of Market Integration
Title Labour Market Rigidities in India
Volume 1
Issue 3
Publication (Day/Month/Year) 2009
Page numbers 339-374
Labour market efficiency is often a function of the degree to which labour is mobile and the market flexible. In India labour markets are integrated but continue to be rigid on account of the legal system that has traditionally viewed labour markets as skewed in favour of employers. Labour dispute resolution, trade union laws, minimum wage stipulations and other laws have ensured that labour often is over protected. This article looks at how existing labour law plays its part in making labour markets less than efficient.

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