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    Factors Influencing Indian Manufacturing Firms’ Decision to Hire Contract Labour

    Singh, Jaivir; Das, Deb Kusum; Choudhury, Homagni; Kukreja, Prateek; Abhishek, Kumar | July 2017
    Abstract
    The present study attempts to investigate the factors affecting a firm’s decision to hire contract workers. We use information from a specially commissioned survey of manufacturing firms undertaken in 2014 by ICRIER, as part of a World Bank funded project ‘Jobs and Development: Creating Multi-Disciplinary Solutions’. The survey covered 500 firms in five states, namely Haryana, Maharashtra, Tamil Nadu, Karnataka and Gujarat and spread across five major industries; viz. Auto Components, Electronics and Electrical Equipment, Leather Products, Textile and Garments and Food Processing. The estimation is carried out using a logit model, where the firm’s decision, whether or not to hire a contract worker is assumed to be a binary dependent variable. Our findings suggest that the firms producing for the export market are more likely to engage contract workers than the ones producing for domestic market. Secondly, presence of trade union activity considerably increases the likelihood for a firm to hire-in contract worker. Further, we find that there seems to be a higher probability for enterprises belonging to a capital-intensive industry to hire in contract workers than the ones belonging to a labour-intensive industry. Next, our findings also suggest that the firms located in states having a ‘protective’ labour legislation are more likely to hire contract workers than the ones located in states with rather flexible labour regulations. The most interesting finding, however, pertains to the ‘skills’ variable. We find that firms with a higher employment of unskilled workers are more likely to hire contract workers than the firms employing a lesser number of unskilled workers.
    Citation
    Singh, Jaivir; Das, Deb Kusum; Choudhury, Homagni; Kukreja, Prateek; Abhishek, Kumar. 2017. Factors Influencing Indian Manufacturing Firms’ Decision to Hire Contract Labour. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/7219.
    Keywords
    Economic development
    Standard of living
    Trade development
    Employment
    Performance appraisal
    Needs assessment
    Input output analysis|ADB
    Employment
    Performance appraisal
    Project failure
    Project impact
    Project appraisal
    Career development
    Vocational training
    Development Challenges
    Asian Development Bank
    Development Management
    Skills Development
    Performance Evaluation
    Evaluation Methods
    Evaluation
    Job Evaluation
    Staff Development
    Labor policy
    Manpower policy
    Promotions
    Career development
    Job analysis
    Participative management
    Grievance procedures
    Supervisors
    Vocational guidance
    Labor policy
    Rural manpower policy
    Career development
    Applications for positions
    Affirmative action programs
    Labor turnover
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    Citable URI
    http://hdl.handle.net/11540/7219
    Metadata
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    Working_Paper_341.pdf (1.142Mb)
    Author
    Singh, Jaivir
    Das, Deb Kusum
    Choudhury, Homagni
    Kukreja, Prateek
    Abhishek, Kumar
    Theme
    Development
    Evaluation
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise