It is conventionally claimed that protected by “pro-worker” labour laws, organised sector workers receive a disproportionate share of the fruits of economic growth. And these “rigid” labour laws are believed to hinder output and employment. An evaluation of wages and earnings data (1981–82—2011–12) suggests that organised sector workers’ real wages have grown slower (0.82% per annum) than per capita income growth (3.6% pa) in India— despite high productivity growth— while their non-wage benefi ts have declined at (-)0.18% pa.
