Union Wage Effects on Contract Labor
Published: 2023
Author(s) Name: Santanu Sarkar |
Author(s) Affiliation: Professor of Labor Relations, XLRI, Xavier School of Management, Jamshedpur
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Abstract
This paper predicts different plausible
conditions which might have
arisen out of a complex relationship of wage differentials between
regular and contract workers
in helping predict the
employer’s ability to hire more labor
on contractual terms especially
if the labor cost was fixed
in a fairly unionized sector such
as manufacturing in India postliberalization.
It examines the
roles played by wage differentials
in maintaining demand for regular
workers to a change in the
wage rate elastic while other factors
of production were easily substituted
and in maintaining demand
for substitution of regular
labor while other inputs to the
production inelastic. It offers direction
towards finding how improved
labor flexibility made one
of the two categories of workers
prosper at the cost of the other’s
hardships during post-liberalization.
Keywords: N.A.
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