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Are De Jure Labor Laws Absolute? Formal Manufacturing In India, Gurmeet Singh Ghumman

Dissertations and Theses Collection (Open Access)

We investigate the view that de facto labor market conditions are important in evaluating the effects of labor institutions in developing countries where enactment does not necessarily imply enforcement. Using India as a case study we empirically investigate the effects of labor markets on the organized manufacturing sector from 1970 to 1997. Recognizing that the state can intervene in the outcome of labor disputes we construct a measure to proxy the degree of the state legislature's prejudice towards pro-worker causes. We argue that leftist and communist political parties can interfere in the resolution of disputes in favor of workers through …