1. International Reseach Journal,November,2010 ISSN-0975-3486 RNI: RAJBIL 2009/300097 VOL-I *ISSUE 14
24 RESEARCH ANALYSIS AND EVALUATION
Research Paper- Economics
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November, 2010
INTRODUCTION.
The new economic policy, which initiated
with strong faith in market mechanisms as a substi-
tute for state intervention has resulted into various
changesbothinfactormarketandinproductmarket.
The protection provided to the labour its effectively
reduced under the name of privatisation and
liberalisation and golbalisation. The workers in the
organised sector received some marginal benefits in
the controlled era. But adverse impact of reforms is
largely borne by small scale industrial workers. The
intensity of these effects needs to be studied in detail
for different region and different industry. Hence, I
havemadeasmallattemptsinthisregardtostudyand
explaintheimpactofneweconomicpolicyonwages
of small scale industrial workers with special refer-
ence to Kolhapur M. I. D. C.
OBJECTIVES&SCOPEOFTHESTUDY
The main objective of the research paper is
tostudytheimpactofNewEconomicPolicyonwages
of small scale industrial workers. The present study
is the case study of impact of New Economic Policy
onwagesofsmallscaleindustrialworkers.Therefore,
the attempt is made to analyse the impact of New
EconomicPolicyonsmallscaleindustrialworkersin
terms of wages.
GEOGRAPHICALAREA
The geographical area is for the research
sruveyandistheentireKolhapurM.I.D.C.,Kolhapur.
The Kolhapur M. I. D. C. is divided into two parts. 1.
ShiroliM.I.D.C.,Kolhapur.2.GokulshirgaonM.I.D.
C.,Kolhapur. Theselectedsampleofworkersisspread
in the industrial centres of the Kolhapur M. I. D. C.
PERIODOFTHESTUDY
Thestudycoverstheperiodof11yearsfrom
1990-91to2000-01.
RESEARCHMETHODOLOGY
The present research study based on pri-
mary as well as secondary data. The primary data
collectedfromthesampleworkersbyusingstructural
questionnaire. This sample drawn on the basis of
stratified sampling method. The secondary data was
collectedfromofficialreports,recordsof S.S.I.units
NEW ECONOMIC POLICY& WAGES OF
SMALL SCALE INDUSTRIAL WORKERS
* Dr. NalawadeA. S.
and documents available from various libraries and
institutions. Various articles published in journals,
books, and many such periodicals.
InordertostudytheNewEconomicPolicyandwages
of small Scale Industrial Workers. I have adopted
following sampling procedure.1. First, I have col-
lected data regarding the total number of firms in the
year2001.Therewere1010firms.However,thetotal
numberofworkersinalltheseunitswasnotavailable.
Hence,Ihaveselected10percentofthefirmsfordetail
study. This makes 101 firms as sample. 2. In the
selected sample firms, the number of total workers
was1009.Ihaveselected30percentofthesample.So
the size of sample workers is 303. 3. While selecting
the workers I followed the composition of different
workers in the universe. Therefore, stratified sam-
plingtechniqueisused.4.Onthebasisoflevelofskill
theworkersareclassifiedintothreecategorynamely
skilled workers semi skilled and unskilled workers it
wasobservedthattherewere289skilledworkers.323
semiskilledand397unskilledworkers.Weselected30
percentfromeverygroup,whichresultedintheselec-
tion of 87 skilled workers, 97 semi skilled and 119
unskilled workers. 5.Another category of workers is
basedongender,therewere908maleworkersand101
femaleworkers.Therefore,Iselected273malework-
ers and 30 female workers
ImpactofNEPonWagesofsmallscalleIndustrial
Workers.
TheNewEconomicPolicyhaveaffectedthe
workersinrespectofwages.Herethechangeinwages
for different types of workers is analysed.
I) Skill Level and Wages
The impact of reforms on monetary as well as real
wages of sample workers based on skill is presented
in Table No. 1.1. We get following conclusions from
the Table No. 1.1. 1. The monthly average wages of
skilledworkerswereRs.1304.13in1990-91,which
went upto Rs. 2347.81 in 1995-96 and further to Rs.
3430.45in2000-01.Itmeansduringtheperiodunder
study the wages of the workers increased by 163.04
per cent. It increased to 80.02 per cent in 1990-91 to
1995-96,whichcamedownto46.11percentin1995-
* Asst. Professor, Shankarrao Mohite Mahavidyalaya,Akluj (MS.)

2. International Reseach Journal,November,2010 ISSN-0975-3486 RNI: RAJBIL 2009/300097 VOL-I *ISSUE 14
25RESEARCH ANALYSIS AND EVALUATION
96 to 2000-01. There is deceleration in increase in
wages of the workers in later half of reform period
under study. 2.The standard deviation for wages for
theskilledworkerswas277.74in1990-91,whichwent
up427.38in1995-96andfurther669.14in2000-01.The
increaseinthestandarddeviationforskilledworkers
shows that the wage disparity among the skilled
workers in increasing over the period under study.
3The monthly average real wage is the more appro-
priate the major to study the impact of reforms on
workers. By using 1982 as a base year, I have calcu-
latedthereal wagesoftheworkers.In1990-91,thereal
wagesoftheskilledworkersasworkedoutRs.582.20,
whichwentuptoRs.657.64in1995-96andfurtherto
Rs.728.33in 2000-01.Thisshowsthattherealwages
of the workers increased by 25.10 per cent on the
backgroundof163.04percentinmonetaryterms.The
real wages of the workerswentup12.95percentdur-
ing 1990-91 to 1995-96 and by 10.74 per cent during
1995-96to2000-01.4.Themonthlyaveragewagesof
semiskilledworkerswereRs.1012.57in1990-91,which
went up to Rs. 1758.09 in 1995-96 and further to Rs.
2511.59in2000-01.Thisshowsanincreaseof148.04
percentin1990-91to2000-01.Itincreasedby 73.62
per cent in 1990-91 to 1995-96 and 42.85 per cent in
1995-96to2000-01.5.Thestandarddeviationforwages
ofthesemiskilledworkerswas192.76,whichwentup
274.03in1995-96andfurtherto320.80in2000-01.This
shows that the wage disparity for the semi skilled
workers had increased over the period under study.
6.Therealmonthlyaveragewagesofthesemiskilled
workerswasRs.452.04in1990-91,whichincreasedby
8.94 per cent in 1995-96 and was Rs. 492.46. This
further increasedtoRs.533.24orby8.28percentfrom
1995-96to2000-01.Itincreased by17.96percentover
theperiodunderstudy(1990-91to2000-01) 7.Inthe
caseofunskilledworkers,themonthlyaveragewages
was Rs. 762.92 in 1990-91, which increased to Rs.
1456.42in1995-96andfurthertoRs.1805.12in2000-
01. The wages of the unskilled workers increased by
136.60 per cent over the period under study. The
monetary wages of the workers went up by 90.90 per
centduring1990-91to1995-96andby23.94percent
during1995-96to2000-01.8.Thestandarddeviation
forwageoftheunskilledworkerswas106.00in1990-
91,whichincreasedto224.58in2000-01.Thisshows
that the wages inequality among the unskilled work-
ers had increased over the period under study. 9.The
realmionthlyaveragewagesoftheunskilledworkers
wasRs.340.58,whichincreasedtoRs.407.96in1995-
96 (incresed by 19.78 per cent) and decreased to Rs.
383.25 in 2000-01 or by 6.05 per cent. There is an
increaseof12.52percentovertheperiodunderstudy.
10.In aggregate for all the workers together, the
monthly average wages were Rs. 998.24 in 1990-91,
whichincreasedtoRs.1808.94in1995-96increased
(by81.21percent)andfurthertoRs.2497.97in2000-
01 (increased by 38.09 per cent). The increase in the
wages over the period under study was 150.23 per
cent. 11..The standard deviation for wages of all
workers increased from 294.98 to 787.17 over the
period.Thisimpliesthatthewageinqualityamongthe
workersincreasedovertheperiodunderstudy.12.The
realmonthlyaveragewagesforalltheworkerswasRs.
445.64in1990-91,whichwentuptoRs.506.70in1995-
96andfurtherRs.530.35in2000-01.Theincreasein
the real wages under study was 19 per cent and it
increasedby13.70percentduringthe1990-91to1995-
96anditincreasedby4.66percentduring1995-96to
2000-01.
GENDERWISEWAGESOFSAMPLEWORKERS
ImpactofNEPononmonctureyasaswellas
real wages of workers based on gender is present in
Table no 1.2.From Table No. 1.2 We get following
conclusions regarding monthly average wages for
male and female workers. 1.The monthly average
wagesformaleworkerswasRs.1043.10in1990-91,
whichincreasedtoRs.1886.48in1995-96andfurther
to Rs. 2587.49 in 2000.01. This shows an increase of
148.05 per cent over the period under study. The
increasein wageswas80.85percentduringtheperiod
1990-91to1995-96anditwas37.15percentforthelater
period. 2.The standard deviation for wages of the
maleworkerswas270.63in1990-91anditwentupto
1023.24in1995-96,butitcamedownto762.99in2000-
01. It means the wages disparity among the male
workers increased substantially but reduced to some
extent in the later years. 3. Therealmonthlyaverage
wagesofthemaleworkerswereRs.465.66in1990-91,
whichwentuptoRs.528.42in1995-96and
Rs.549.36in2000-01.Theoverallincreaseinthereal
wage rate for male workers is 17.97 per cent over the
periodunderstudyandtheincreaseinitwas13.47per
cent in first half and 3.96 in the second half. 4. In the
case of female workers, the monthly average wages
wasRs.590.00in1990-91,Rs.1103.33in1995-96and
Rs. 1683.33 in 2000.01. This shows that growth of
wagesby185.31percentovertheperiodunderstudy.
The increase in wages was 87.00 per cent in the first
and 52.56 in the second half. 5.The real monthly
average wages of the female workers was Rs. 263.39
in1990-91,whichincreasedtoRs.309.05in1995-96
and further to Rs. 357.39 in 2000-01. This shows in-
creaseinrealwagesby35.68percentovertheperiod
under study and it increased by 17.33 in the first half
and 15.64 in the second half.

3. International Reseach Journal,November,2010 ISSN-0975-3486 RNI: RAJBIL 2009/300097 VOL-I *ISSUE 14
26 RESEARCH ANALYSIS AND EVALUATION
6.TheS.D.formonthlywagesforthefemaleworkers
was166.81in1990-91,itwentupto359.82in1995-96
and 480.18 in 2000-01. This shows that inequality of
wagesoffemaleworkersincreasedduringtheperiod
under study.
CONCLUSION:
The study reveals following major conclusions.
1. In terms of monthly average wages and skill level
of workers, it was observed that there is an increase
inwagesforskilledworkers,semiskilledandunskilled
workers. However, the increase in the second half is
substantially less than increase in the first half. It is
also observed that the compostition of the growth in
monthly average wages of skilled workers increased
atahigherfollowedbysemiskilledandunskilledwork
ers. This implies that the reforms are making some
positive impact on workers with skill. In the process
1. Dr. Nalawade A. S., “Impact of New Economic Policy on small scale Industrial workers in Kolhapur, M. I. D. C.”, Unpublished
Ph. D. Thesis submitted to Shivaji University, Kolhapur. 2.Ruddar Datta, New Economic Policy and its impact on Industrial
Relations & Employment in India, The Indian Journal of Labour Economics, Jan-March, 1993, Vol. 36, No. 1. 3.Sharma
S. P., and K. K. Saxena Structual Reforms and Their Impact on Employment Generation in India. An Input - Outpur Approach.
The Indian Journal of Labour Economics, April - June 1998. Vol. 41 No. 2. 4.Abusaleh sharrif & Anil Gumbor, Employment
& wages in India Pre & Post & Reforms scenario, The Indian Journal of Labour Economics, April June 1999, Vol. 42, No.
2.6.Datta R. C. New Technology & Textile workers E. P. W. Sept. 25 Oct 1, 1999. Vol No. XXXIV No. 39.7. Banerjee Nirmala
& Swati Mitter, Women making a meaningful choice Techonology & new Economic order E. P. W. Vol. XXXIII No. 51.,
Dec. 19.25.1998. 8.The Indian Jouranl of Labour Economics, July - Sept. 2002., Vol. 45, No. 2.
of reforms, unskilled workers had been put at the
worstpositioninthecaseofunskilledworkers.There
isdecreaseofrealwagesduring1995-96to2000-01.
2. The comparison of monthly average wages be-
tween male and famale workers it was observed that
the wages of female workers is substantially lower
thanmaleworkers.However,theincreaseinmonthly
wages is higher for female workers than the male
workers. It was also observed that the wage
inequalityofmaleandfemaleworkersincreasedover
the period under study. 3. Inaggregateforallwork-
erstogetheritwasobservedthatthemonthlyaverage
wages(bothmonetaryaswellasrealterms)increased
over the period under study. It increased at a higher
rate in the first half as compared to second half.
Howerver, the wage inequality among the workers
increased over the period under study.
R E F E R E N C E
AppendixNo.1.
Consumer Price Index
1982 = 100
Year Consumer Price Index
1990-91 224
1995-96 357
2000-01 471
Source : Indian Labour Journal, July Sept - 2002.