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The empirical evidence on the association between labour market flexibility and research & development (R&D) activities of firms is limited only to developed economies. In this research note, we examine the relationship between labour market flexibility and the R&D decisions of firms in India's organised manufacturing. Using a cross-section of manufacturing firms from the Annual Survey of Industries (ASI) 2015–16 unit-level data, we model the R&D decision of firms as a two-step process. We use Cragg's Double-hurdle model that examines the probability of undertaking R&D in the first stage and the extent of R&D expenditure Amongst the R&D-performing firms in the second stage. Controlling for the firm-specific determinants of R&D expenditure, we find that the spatial variation in labour market flexibility is negatively and significantly associated with the extent of R&D expenditure of R&D-performing Indian firms. We extend the analysis by proxying R&D investment with the factories' net investment in plant and machinery. We found a similar negative correlation between labour market flexibility and the net value of plant and machinery of factories. [ABSTRACT FROM AUTHOR]

The ruling National Democratic Alliance regime in India pushed through three labour codes in September 2020 namely the Code on Social Security; Occupational Safety, Health and Working Conditions Code; and the Industrial Relations Code. These alongside the Code on Wages approved earlier in 2019 amalgamate several labour laws. This study is an endeavour towards a critical examination of the Industrial Relations Code, 2020. It engages in a comparative analysis of the various provisions of the Code vis-à-vis the laws which were its predecessors. Some key features of the Code as well as their ramifications are probed. Further, their potential impact on trade unionism and the right to strike is discussed. The relationship between capital and labour is adversarial rather than complementary. This paper argues that reforms in the real sense must seek to balance the interests of both parties rather than that of employers alone. [ABSTRACT FROM AUTHOR]

Foreign direct investment is one mode of entry into international markets that can provide important benefits to host economies. For this reason, policymakers have sought to apply policies that attract foreign direct investment. Although there is extensive and relevant literature that explores the determinants of foreign direct investment, few studies exist that focus on the relationship between labour market flexibility and foreign direct investment; furthermore, most of these are firm-level studies and use old data. Thus, this study aims to analyze the influence of labour market flexibility on foreign direct investment based on macroeconomic data for a set of 180 countries and a relatively recent period of analysis (2004-2009). Using econometric techniques with panel data, the results show that labour market flexibility enhances the attraction of foreign direct investment. In particular, the rigidity of working hours is the dimension of labour market regulations that most negatively affects the attraction of foreign direct investment. Based on the control variables used, we found that the economic and financial incentives, trade barriers, the growth and the size of the market and the level of human capital are important determinants in the explanation of foreign direct investment patterns. [ABSTRACT FROM AUTHOR]

This paper delves into the debates concerning labour market flexibility in India and suggests an improved measure of labour market flexibility to overcome the shortcomings of the existing measures. A state-wise time-variant composite index considering both de jure and de facto indicators of flexibility is constructed to account for the stringency of regulation of hiring and firing practices that affect labour adjustment mechanism of organised manufacturing sector firms in India. The newly built index reaffirms the criticism and limitations of the existing measures which solely rely on de jure indicators by pointing out that de jure measures alone are highly misleading and insufficient to identify a state's labour market flexibility status. The index has been put to application in examining the role of spatial variation in labour market flexibility in explaining the difference in employment growth in India's organised manufacturing sector. The paper finds no evidence in support of a statistically significant effect of spatial variation in flexibility in explaining the variation in employment growth. Interestingly, the paper demonstrates that employment elasticity of growth was lower in "flexible" states as compared to the "rigid" states, indicating that greater flexibility is associated with a weaker employment performance. [ABSTRACT FROM AUTHOR]

This contribution reveals some structural properties of the Czech and Slovak labour markets. A search and matching model incorporated into a small standard DSGE model is estimated using Bayesian techniques. Two sources of rigidities are implemented: wage bargaining mechanism and "search and matching" process matching workers and firms. The results show that the search and matching aspect provides satisfactory description of employment flows in both economies, and that the institutional characteristics do not differ too much in both economies. The model estimates provide interesting evidence that wage bargaining process is determined mainly by the power of firms. These results support the view of flexible wage environment in both economies. On the other hand, firms are confronted by increasing vacancy posting costs that limit vacancies creation. Relative low separation rate provides evidence of reduced mobility of the workers. [ABSTRACT FROM AUTHOR]

The present paper investigates the development of non- wage employment (NWE) in the context of sensible changes in economic structure, by increasing the relative importance of the services' sector and labour force supply due to an expansion of higher education. We identify factors which favour the expansion of NWE in the context of transition to knowledge-based economy in the countries with solid market economy. A comparative analysis is made about the relative importance of employment in European Union member countries and a series of correlations performed with other structural indicators of the labour force market. On this basis, the conclusion is that the NWE physiognomy is dependent to a significant extent on the development degree and sectoral structure of the economy in various countries. The analysis of the NWE development is deepened in the case of Romania by paying special attention to the case of higher educated individuals. It is found that the increases in the number of self-employed persons with higher education is mainly a forced choice for avoiding entering unemployment and only at secondaty level the expression of a new type of entrepreneurial spirit, as in the case of countries with consolidated market economy. [ABSTRACT FROM AUTHOR]

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Copyright of Sociología del Trabajo is the property of Universidad Complutense de Madrid and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)