ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Wages and Non-wage Benefits in Organised Manufacturing

Evidence since 1981–82

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.

The article is based on the author’s Masters’ thesis, “Wages and Non-wage Benefits in the Organised Manufacturing Sector: Evidence since 1981,” at the Indira Gandhi Institute of Development Research, Mumbai. The author would like to thank her supervisor R Nagaraj for his valuable guidance and comments on various aspects of the fi ndings of this article.

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