An Econometric Exploration into the Determinants of Industrial Disputes in Indian Manufacturing Industries

Abstract

In the present study, an attempt is made to identify some of the determinants of disputes in Indian manufacturing industries at a two-digit level. The study covers data on 22 industries for a period of 25 years (1981–2006) at a two-digit level. The dependent variable is the man-days lost in disputes per worker and the independent variables are the degree of trade unionization, real wages and salaries per worker, average factory size and the dummies for historic textile strike and economic reforms. The study is further divided into pre- (1981–1991) and post-reform (1992–2006) period so as to identify any significant change that has taken place in the relationship of the dependent and the independent variables in the pre- and post-reform period. The econometric investigation reveals significant insights into the problem of disputes in manufacturing industries. The study reveals that the independent variables have significantly affected disputes during the time period of the analysis.