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<p>This study investigates the interplay between employment protection legislation (EPL), educational attainment, and labour market segmentation in India, with a particular focus on contract workers’ job mobility. Using nationally representative micro-level data covering 20,969 individuals across 15 states, the analysis examines both determinants of permanent employment and transitions from contractual to regular positions. The results reveal that stricter EPL significantly reduces the likelihood of permanent employment, prompting employers to prefer contract workers. While higher education enhances the probability of securing regular jobs, it does not significantly improve upward mobility from temporary to permanent positions, suggesting structural barriers in the dual labour market. Gender disparities also influence outcomes, with women experiencing limited opportunities ex ante, yet showing higher mobility ex post compared to men. These findings highlight the persistence of labour market dualism in India, where stringent EPL protects insiders while contract workers remain excluded, limiting equitable employment opportunities.</p>

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Factors influencing employment contract and job mobility in India’s labour market: an empirical study

  • 期刊论文

  • 发表日期：

    2026年1月30日

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  • Abrar Rehman Rather,
  • Irfan Ahmad Sofi

摘要

This study investigates the interplay between employment protection legislation (EPL), educational attainment, and labour market segmentation in India, with a particular focus on contract workers’ job mobility. Using nationally representative micro-level data covering 20,969 individuals across 15 states, the analysis examines both determinants of permanent employment and transitions from contractual to regular positions. The results reveal that stricter EPL significantly reduces the likelihood of permanent employment, prompting employers to prefer contract workers. While higher education enhances the probability of securing regular jobs, it does not significantly improve upward mobility from temporary to permanent positions, suggesting structural barriers in the dual labour market. Gender disparities also influence outcomes, with women experiencing limited opportunities ex ante, yet showing higher mobility ex post compared to men. These findings highlight the persistence of labour market dualism in India, where stringent EPL protects insiders while contract workers remain excluded, limiting equitable employment opportunities.