This dispatch unpacks how a well-meaning labor law in India backfired—driving more workers into informal jobs—and offers lessons on how thoughtful policy design can avoid unintended consequences.
This is clear and concise example of good intentions leading to poor outcomes. I also see AP govt missed discussions with the industry. Perhaps they could have followed a consultative approach with all relevant stakeholders. Some broad learnings:
1. Work on the root cause by making hiring of workers simple in the formal sector.
2. Help companies in informal sector transition to formal by giving incentives (positive externality, as state productivity improves)
This is clear and concise example of good intentions leading to poor outcomes. I also see AP govt missed discussions with the industry. Perhaps they could have followed a consultative approach with all relevant stakeholders. Some broad learnings:
1. Work on the root cause by making hiring of workers simple in the formal sector.
2. Help companies in informal sector transition to formal by giving incentives (positive externality, as state productivity improves)