Elements of Labour Economics - Final

7/31/2019 Elements of Labour Economics - Final

1/18

ELEMENTSOF LABOUR ECONOMICS

Group Members:

Ankita Singh

Andrew Hicken

Satyajeet kumar

Jeeta


2/18

WHATARE LABOUR ECONOMICS?

To understand the functioning and dynamics of

the markets for labour

Function through the interaction of workers and

employersLooks at -

Suppliers of labour services (workers),

Demands of labour services (employers), Attempts to understand the resulting pattern of

wages, employment, and income.

2


3/18

COMPENSATION & MEASUREMENT

Wage = Payment per unit of time (Typically an hour)

Earnings = Payment accrued over a period (Typically a

week, a month, or a year)

Total Compensation = Earnings + Other benefits forlabour

Income = Total Compensation + Unearned income

3


4/18

DEMAND & SUPPLYOF LABOUR

Demand

Labour demand depends on

Marginal Revenue Product(MRP)

Marginal Cost (MC)

Firm employs up to thepoint where MRP = MC

Supply

4


5/18

ELEMENTSOF LABOUR ECONOMICS

The basic subject matter of labour Economics can be considered

under nine broad heads: employment

individual employment relationships

wages and remuneration

conditions of work health, safety, and welfare

social security

trade unions and industrial relations

the administration of labor Economics and special provisions for particular occupational or other

groups

5


6/18

LABOUR ECONOMICSIN INDIA

ANDITSNEED

Labour Legislation refers to all laws of theGovernment which have been enacted toprovide social and economic security to thelabour or workers.

The evils of industrialization have led to thelabour legislation. Now the state has a directinterest in the industrial peace andprosperity.

These acts are aimed at reduction ofproduction losses due to industrial disputesand to ensure timely payment of wages andother minimum amenties of the workers.

6


7/18

CONTINUE

The basic principle of industrial legislation is toensure social justice to the workers .

The object of legislation is the equitable distribution

of profits and benefits accruing from industrybetween industrialists and workers and affordingprotection to the workers against harmful affects totheir health safety and morality

7


8/18

CONTINUE

In a developing country like India, Labour legislationbecomes especially important because of thefollowing reasons :

Labour organizations are relatively weak and inmost of the cases, they depend merely on themercy of the employers.

Individual worker is economically very weak and isunable to bargain his terms with the employers.Now the prior payment of wages lay off, dismissal,retrenchments etc , are all governed by legislation.The economic insecurity of the workers is removedto a great extent

8


9/18

CONTINUE

In many organizations, workers may feeloccupational insecurity.

The workers may not be given money in case ofaccidents, death, occupational Act, EmployeesState Insurance Act, certain benefits have beenstatutorily given to workers which the employeesotherwise may not get from their employers.

In any factories, there important working conditionson account of which the employees health andsafety is always in danger.

The factories Act contains a number of provisionsrelating to health safety and welfare of workers.Special provisions have been made for the women

9


10/18

OBJECTIVESOF LABOUR ECONOMICS

1. To protect the workers from profit seekingexploiters.

2. To promote cordial industrial relations betweenemployers and employees.

3. To preserve the health safety and welfare ofworkers.

4. To protect the interests of women working in

the factories.

10


11/18

PRINCIPLESOF LABOUR ECONOMICS:

Social Justice

Economic Justice National economy

International conventions

11


12/18

SOCIAL JUSTICE

The concept of social justice refers to providing

justice to everyone in the society so that the poor

are not exploited by the rich.

It is an in the interest of both employers and

employees that they should consider themselves as

two wheels of a cart and firmly believe that one

cannot exist without the other.

12


13/18

ECONOMIC JUSTICE

Touches individual person,social order.

Encompasses the moral principleswhich guide us in

designing our economic institution.


14/18

NATIONAL ECONOMY

Labour legislation ensures industrial peace andhelps in the industrialization of the country.

The Directive principles of the constitution containthe idea of welfare state.

It is a fundamental of a welfare state to look afterthe interest of workers who are the weakest sectionof the society and satisfy their physical needs withthe increase in productivity the benefits are sharedwith the workers, resulting in their prosperity.

Thus for the growth of economy and developmentof the country, labour legislation acts as guidingprinciple

14


15/18

INTERNATIONAL CONVENTION

International labour organizations aims at securing

the minimum standard of living for the workers

throughout the world.

If any convention is passed by govt, it becomes

binding if it is ratified by any country.

Thus, labour legislation is guided by these

conventions.

15


16/18

GRAPHOFTHEEMPLOYEESOF INDIAN

RAILWAYS

16

Source:- Indian Railway


17/18

CONCLUSION

17


18/18

Thank You

18

Elements of Labour Economics - Final

Documents

Transcript of Elements of Labour Economics - Final