Quality Employment and Firm Performance Evidence from Indian Firm-Level Data

34 Pages Posted: 20 Jan 2012

See all articles by Glenita Amoranto

Glenita Amoranto

Asian Development Bank

Natalie Chun

Asian Development Bank

Date Written: October 1, 2011

Abstract

We investigate the characteristics of manufacturing firms in India that generate better quality employment and the relationship between quality employment and firm performance using multiple measures of employment quality. Larger firms tend to generally provide better quality employment opportunities even after controlling for aspects related to employee skills. The organizational structure of firms matters, with government, private, and cooperative firms generally in terms of providing higher quality employment and better compensation measures, but lower quality employment in terms of gender equality. Overall, employment compensation does lead to higher profit, labor productivity, and capital productivity. However, providing more direct employment appears to constrain profits and productivity while increases in gender equality tend to have a negative effect on labor productivity.

Keywords: quality employment, labor productivity, firm performance, manufacturing, industrial policy, gender equality, employee skills, government, private and cooperative firms, economics working paper no. 277

JEL Classification: J08, L25

Suggested Citation

Amoranto, Glenita and Chun, Natalie, Quality Employment and Firm Performance Evidence from Indian Firm-Level Data (October 1, 2011). Asian Development Bank Economics Working Paper Series No. 277. Available at SSRN: https://ssrn.com/abstract=1988584 or http://dx.doi.org/10.2139/ssrn.1988584

Glenita Amoranto (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Natalie Chun

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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