Social Scientist. v 15, no. 161 (Oct 1986) p. 60.


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60 SOCIAL SCIENTIST

labour market in India is essentially fragmented and a bilateral monopoly situation in bargaining rarely obtains even within a single industry, a long term and fairly universal fall in wage-share in income should have at least an indirect influence on wage-bargaining. What we are postulating is a rising tendency in industrial disputes sometime towards the end of the twenty-year period. Taking workers involved in disputes as a proportion of total organised sector employment to be the index, we observe that this has indeed happened, though the break in trend cannot be very precisely located (Table VI). The tendency however, appears clear only if we make an allowance for the repression of the emergency. The long-term trend is especially noticeable in the case of Punjab-Haryana, Gujarat, Andhra Pradesh, Uttar Pradesh and Bihar. This is a significant result because all are recently industrialised states in which wage-share has decreased sharply between I960 and 1975,

1. Kanta Ranadive, "Wage-share in Organized Manufacturing Industries in India, 1946-57'. Artha Vijnaua, December 1961 ; M M. Dadi, Income Share of Factory Labour in India, New Delhi, 1973 and S.L. Shetty, •Trends in Wages and Salaries and Profits of the Private Corporate Sector', Economic and Political Weekly, October 13, 1973. See also the industrial wage-structure literature of the seventies. Bakul Dhalakia, C K. Johri and N.C. Agarwal, Deepak Lal, P.C. Verma, P.K. Sawhney, T.S. Papola, et. al. contributed on this theme mainly in Indian Journal of Industrial Relations and Indian Journal of Labour Economics. Two concerns were prominent in Ranadive's study, cyclical behaviour of the share and influence of shifts in industrial composition on wage-share. A 'contracyclicaF tendency was found to operate but underlying the short-term changes, a secular trend could be identified especially after 1952. Structural shifts were indeed a significant influence on the aggregate wage-share, but according to her, 'the wage-share would have declined even with an uncharged industrial composition'. Dadi carried out tests of correlation between capital—labour ratio, based on estimates of capital stock adjusted for age-composition, strength of labour organisation, skill-mix and wageshare. Capital-labour ratio was found significant for across-iudustry differentials in wage-share, levels but not for differentials in temporals changes in the share.

2. The census sector of ASI represents about 80 per cent of total employment in registered factories. Its coverage extends to a substantial part of the registered small-scale factories as officially defined. Data on the unregistered manufacturing sector are available from the National Accounts but prevalence of household enterprises in this sector makes it difficult to unambiguously define 'wages' and Wageshare'. If these difficulties are ignored, wage-share has declined in the unregistered sector as well and the trend has remained unbroken. See P.R. Brahmananda, "Economic Theory and labour Economies', Presidential Address at the 26th Indian Labour Economics Conference, Mysore, 1986.

3. M.M. Padj, op. cit,



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