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Labor Market Flexibility & Trajectories of Development: Lessons from Brazil, India & China

Indian Journal of Industrial Relations

Volume 50 Issue 1

Published: 2014
Author(s) Name: Anil Verma & Ana Virginia Moreira Gomes | Author(s) Affiliation:
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Abstract

In China, labor policy first diluted employment security rights to facilitate re-allocation of labor to the private sector. When new labor problems emerged, policy shifted to re-regulate the labor market. Brazils success in achieving economic growth and social progress simultaneously is unparalleled: informality, income inequality and unemployment decreased. India needs macro-level flexibility in re-allocating labor from informal to formal work, from rural to urban areas, and from the unskilled to the skilled. Micro-level flexibility through termination of employment must be coupled with stronger social security programs for adequate severance pay and re-training for other employment and also stronger protection for workers in the informal sector.

Keywords: N.A.

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