Keywords
job ladder
EPL
Permanent Workers
How to Cite
Abstract
India's registered manufacturing sector experienced a noteworthy change in employment structure in the early 2000s, marked by a significant increase in the use of contract workers over permanent employees. This paper investigates whether workers with temporary contracts climb up the job ladder or if they find themselves trapped in periods of temporary labour (focusing on dualistic labour segmentation) with particular emphasis on the influence of educational attainment and the enforcement of Employment Protection Legislation (EPL). Utilizing comprehensive data from the Centre for Monitoring Indian Economy (CMIE), we analyze how individuals’ educational attainment and the stringency of EPL shape employment patterns, specifically affecting the likelihood of securing permanent positions. The results show that educational attainment does not have a positive impact on the upward job mobility of contract workers. Additionally, stricter enforcement of EPL makes it less likely for individuals to transition from contractual to permanent employment, possibly due to the increased job security of permanent workers or to evade labour laws.
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