Your interest is appreciated. We had a discussion in Section A about the actual Minimum Wages in India. You can see that there are huge variations in the amount of Minimum Wage paid across different states in India. How did they arrive at these rates? Are these wages actually helping the marginal workers? Can we ever think of development with these rates? etc. are questions for further research.
The crucial aspect is the narrowing of the gap between payments to skilled and unskilled labor. In my opinion, if we pay a skilled worker just a little above unskilled labor, where is the incentive to educate and train oneself?
The Case about Minimum Wage that we studied today in Section C actually tells us that such legal interventions by Governments is actually counterproductive. Now the question is, should we continue with such practices... or there should be some other mechanisms to pay marginal workers. Read the ERM, some indications have been already given.
Sir I have two doubts from the data that I have studied.I am sure there will be more questions once I go through it all. 1.How do we explain such insignificant changes in wages of skilled and unskilled workers in a sector like law which is purely education based. 2.Why does a state like Kerala with best literacy rate in the nation has such disappointing minimum wages.
Answer 1: Note that all the minimum wage categorization is for either class IV workers or 'badli' / temporary workers. The worker class here is not the ordinary office goers or permanent in nature. You may locate peons, sweepers and other menial jobs.
Answer 2: I have already explained that the level of wage is also related with State GSDP or ability to budget a particular range of wages. In short, if the state is rich, it may give a higher Minimum Wage. In all the four southern states, there is massive public spending on social sector. As a result people get a lot of freebies but the state exchequer takes a beating. Thus, you may have 100% literacy but jobs are on the wanting side. Also, note that Kerala has comparatively low cost of living from other state.
Sir I want to know the possible reasons as to why government does not follow up the implementation of the law which is there to benefit the labourers. As mentioned in the website there are almost 92% percent working in unorganised sector. It's the first and the foremost duty of government to keep a check of the implementation of this act. Shailee Joshi. Section C
A Government is not a monolithic organization which is run under one command. It has interest groups, ideologues and political parties with their own groupings. As a result, decision making by way of democratic processes is time taking and full of obstacles. Sometimes even with the will to correct things, people in Government cannot have their ways.
The above explanation assumes a functioning Government which is having the right intentions. The other side of the story is corruption and nepotism which is part of every Government. It is due to all these factors that the law is always away from either enactment, implementation or perusal.
9 comments:
SIr, This is a really interesting site and the amount of statistics present here would be really useful for us to relate to in the real world..
Thanks a lot
Shreyansh
Dear Shreyansh,
Your interest is appreciated.
We had a discussion in Section A about the actual Minimum Wages in India. You can see that there are huge variations in the amount of Minimum Wage paid across different states in India. How did they arrive at these rates? Are these wages actually helping the marginal workers? Can we ever think of development with these rates? etc. are questions for further research.
The crucial aspect is the narrowing of the gap between payments to skilled and unskilled labor. In my opinion, if we pay a skilled worker just a little above unskilled labor, where is the incentive to educate and train oneself?
The Case about Minimum Wage that we studied today in Section C actually tells us that such legal interventions by Governments is actually counterproductive. Now the question is, should we continue with such practices... or there should be some other mechanisms to pay marginal workers. Read the ERM, some indications have been already given.
Happy Reading,
Have a nice weekend :)
Warm Regards,
Arun
Sir I have two doubts from the data that I have studied.I am sure there will be more questions once I go through it all.
1.How do we explain such insignificant changes in wages of skilled and unskilled workers in a sector like law which is purely education based.
2.Why does a state like Kerala with best literacy rate in the nation has such disappointing minimum wages.
Dear Aditya,
Well Observed!
Answer 1: Note that all the minimum wage categorization is for either class IV workers or 'badli' / temporary workers. The worker class here is not the ordinary office goers or permanent in nature. You may locate peons, sweepers and other menial jobs.
Answer 2: I have already explained that the level of wage is also related with State GSDP or ability to budget a particular range of wages. In short, if the state is rich, it may give a higher Minimum Wage. In all the four southern states, there is massive public spending on social sector. As a result people get a lot of freebies but the state exchequer takes a beating. Thus, you may have 100% literacy but jobs are on the wanting side. Also, note that Kerala has comparatively low cost of living from other state.
Hope this answers your query.
Keep Questioning :)
Warm Regards,
Arun
Sir I want to know the possible reasons as to why government does not follow up the implementation of the law which is there to benefit the labourers. As mentioned in the website there are almost 92% percent working in unorganised sector. It's the first and the foremost duty of government to keep a check of the implementation of this act.
Shailee Joshi.
Section C
Dear Shailee,
Good Morning!
A Government is not a monolithic organization which is run under one command. It has interest groups, ideologues and political parties with their own groupings. As a result, decision making by way of democratic processes is time taking and full of obstacles. Sometimes even with the will to correct things, people in Government cannot have their ways.
The above explanation assumes a functioning Government which is having the right intentions. The other side of the story is corruption and nepotism which is part of every Government. It is due to all these factors that the law is always away from either enactment, implementation or perusal.
Hope this answers your quesry.
Warm Regards,
Arun
So can we say if not directly, indirectly the government is trying to satisfy the producers through this law ?
Sir,
Considering kerala's case do you think economists like Amartya Send are justified in their stand?
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