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Mobilizing RestraintDemocracy and Industrial Conflict in Post-Reform South Asia$
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Emmanuel Teitelbaum

Print publication date: 2011

Print ISBN-13: 9780801449949

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801449949.001.0001

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Labor Institutions, FACB Rights, and Economic Performance in India

Labor Institutions, FACB Rights, and Economic Performance in India

(p.113) Chapter 5 Labor Institutions, FACB Rights, and Economic Performance in India
Mobilizing Restraint

Emmanuel Teitelbaum

Cornell University Press

This chapter examines the impact of the provision of worker rights on economic performance through an analysis of labor legislation enacted in the Indian states. It demonstrates that laws that promote third-party mediation and institutionalized grievance facilitate economic growth. Enhancing the voice function of unions not only boosts investment, it decreases employer reliance on sweated labor, thereby promoting capital-intensive production. Regulation that squelches the voice of workers has the opposite effect. Prohibiting routine protest produces instability in industrial relations that, in turn, hampers productivity and induces capital flight. Such regulation also emboldens employers to engage in despotic labor relations, thereby reducing the incentive to invest in productivity-enhancing technology.

Keywords:   worker rights, India, labor law, labor policy, third-party mediation, economic performance, industrial relations, strikes

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