THE RIGIDNESS OF LABOR LAWS: A COMPARATIVE ANALYSIS BETWEEN INDIA AND CHINA
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Abstract
The world population today is approximately 7.4 billion and is expected to increase to 9 billion within decades. Increasing population indicates an ever increasing labor force across the world. Labor is one of the principal economic factors which create both demand and supply. On the supply side, labor renders its services to the firms and in turn, gets paid by these firms in terms of money wages and other remittances. On the demand side, these money wages fuels the consumption growth. This makes the labor a vital factor among the factors of production making it extremely important to take into consideration their interests. Generally it has been observed that the interests of the labor and the employers are in conflict. While the labor wants better wages and living standards, employers are willing to do anything to reduce their costs. The mutual consensus between the labor and employer is often missing. For this purpose, a wide range of labor laws have been enforced across the globe to protect the rights of the labor.
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