Abstract
Although informal labor has proliferated in many developing countries, the desire to attract foreign direct investment has often led to a disassociation of the national government from labor regulation at the federal level. Enforcement capacity (and commitment) at the state/provincial level is crucial. We analyze two key newly industrialized countries in Asia, Indonesia and India, comparing their enforcement capacity in the realm of decent work. We highlight the variation in the degree of labor law enforcement found within each country, noting how the different degrees of centralization in each country translate into labor relations and enforcement outcomes. We conclude with some recommendations for policy and practice.
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