Industry Trade Exposure and the Quality of Employment in India’s Manufacturing Sector




Globalization, trade and labour institutions have implications on the labour market affecting the regular nature of jobs and increasing dependence on contract labour. Using worker-level data for India's manufacturing sector, this paper evaluates the influence of outward orientation of the worker's industry on the informal nature of employment. We find that higher import penetration and export orientation of the manufacturing industries of workers promote employment of regular nature. However, the regular jobs come tied up with lack of job contracts in industries facing higher import competition. Export-oriented industries increase the chances of regular jobs with a written job contract. Keywords Trade, informal jobs, manufacturing sector, India, labour legislations Introduct ion In recent years, 'flexibilization' of labour has been a prominent feature of labour markets across developed as well as developing economies. The economic pressures of globalization and trade liberalization have translated into an increase in volatility in the labour market, higher labour demand uncertainty, flexibility of jobs and rise in job insecurity (Mazumdar, 2000; Rodrik, 1996). The informal employment arrangements and ambiguities with respect to terms and conditions of employment are, in fact, more widespread in the developing world. Conventionally, in developing countries, the major forms of informal employment encompass the self-employed and the casual workers, and contributing f


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