Relevance : GS Paper III
Thus age-old social institutions continue to have a grip on the labour market
Segmentation of labour Market
- In India, labour markets are deeply segmented along caste and gender lines.
- There are frequent instances in which workers belonging to oppressed castes are discriminated against.
Capital favoured over labour
- Globally, economic changes have favoured capital over labour.
- The inability of present-day capitalism to absorb labour is the reason for the continuing expansion of the informal sector in developing countries.
- More than 82% of employment in the Indian economy is in the informal sector.
- Emergence of strong linkages between the formal and informal sectors can benefit the economy as a whole..
- However, the relation between the formal and informal sectors has been rather weak .
- Increasing employment of contract workers in place of regular workers reduce plant productivity .
- There has been low rate of female labour force participation in India .
- Lack of education, lack of facilities such as child care are responsible for this.
- Further, the society and the economy undervalue the work performed by women within their own households.
- “Demographic dividend” requires investments in education and human development.
- Creating institutions for improving women’s education.
- Providing facilities such as childcare to ease the burden of domestic work
- Creating more employment opportunities in the economy will be crucial to boosting demand for women’s work.
- Emergence of strong linkages between the formal and informal sectors can benefit the economy as a whole.
It is clear that in a country like India studies on labour will remain central to any attempt to understand the economy. Economists need take up research on questions of labour and employment growth in the Indian context.