Through the Glass Clearly

The Economic Times     10th November 2021     Save    
QEP Pocket Notes

Context: India needs evidence-based policymaking, for which a batch of surveys is being undertaken.

Importance of evidence-based policy

  • Checking politicisation of economic decisions: Eg. Perception that immigration reduces employment. 
  • Case study: Card and Kreuger ‘s study looked at the impact of setting of minimum wages high in the US state of New Jersey by comparing it with Pennsylvania, where minimum wages were not set high. 
  • The study concluded that New Jersey, did not witness decline in employment.
  • Limitations of traditional policy paradigm: Because even though assumptions of theoretical models on which policy recommendations are made are often far from reality, people accept that the predictions are true.
  • Adding accountability check: Economists can study policies that have actually been adopted by governments.
  

India’s policy response towards evidence –based policymaking

  • Codification of complex laws: To uplift the standard of living of workers government has introduced four labour codes focusing on improving working conditions.
  • Data collection drive: For efficient drafting of policies, GoI has embarked on an unprecedented data-collection drive like-
    • All-India surveys on migrant workers & domestic workers.
    • Employment generated by professionals& employment generated in the transport sector.
    • All-India Quarterly Establishment-based Employment Survey (AQEES).
  • Launch of e-Shram portal with over 5 crores registrations will come in handy in ensuring policies and benefits meant for the migrant workers reach them.
  • Use of technology and tilt towards inclusiveness:  Surveys based on paperless’ data-collection approach through use of tablet computers in the field work.
    • Tablets are equipped with latest software application i.e. likely to reduce the survey completion time by at least 30-40%.
    • Inclusiveness: As, these surveys will be conducted in major regional language.

Conclusion: GoI’s intervention through surveys will plug the data gap on various aspects of labour and employment and aide evidence-based policymaking processes.

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QEP Pocket Notes