Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33664 
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers No. 1596
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This study provides an empirical investigation of the adjustment process of labour in Indian manufacturing industries, which evolved through structural transformation in the era of globalization. The analysis is based on a dynamic model applied to a panel of 22 two-digit manufacturing industries for the time period of 22 years covering 1980/81 to 2001/02. We assume that as competition increases industries adjust their employment to a desired level which is both industry and time specific. The results indicate that the manufacturing sector has shown a considerable dynamism in adjusting its workforce. The long run labour demand responds greatest to the output, followed by capital and least by wages. It is observed that Indian manufacturing is not inefficient in labour use as modest speed of adjustment has led employment size closer to the optimal level.
Subjects: 
labour use
employment
adjustment
globalization
manufacturing
India
JEL: 
C23
J23
L60
Document Type: 
Working Paper

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