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BUDS Think 2021 deciphers labour market

With a view to creating awareness among students about Nobel Prize for Economics, the Department of Commerce and Financial Studies, Bharathidasan University, teamed up with Internal Quality Assurance Cell of the varsity to conduct ‘BUDS Think 2021’.

There were deliberations by economics professors and experts during the day-long event recently on whether or not payment of minimum wages to workers would reduce employment, in the backdrop of the assertions by Nobel Prize winners that minimum wage does not lead to unemployment.

In his lecture on ‘Labour Market Effect on Immigration’, Jebamalai Vinanchiarachi, former Principal Advisor to General Director, UNIDO, Vienna, Austria, shared his observations on migrants of Nuba mountain region of South Sudan, the story of migration in Africa, and European Union interventions to emphasise on enhancement of productivity.

S. Iyyampillai, Senior Professor of Economics (Retired), Bharathidasan University, observed that productivity in excess of supply leads to unemployment, in his special address titled ‘Labour Market Effect on Minimum Wages’. Government intervention through any form (for enforcement of minimum wages payment), though made with good intention, would lead to negative result, he said, adding that knowledge workers were in an advantageous position owing to the attributes of creativity, efficiency, productivity and innovative thinking.

Citing the proof portrayed by Nobel Laureate David Card through Phillips Curve that minimum wage does not lead to unemployment, S. M. Suriyakumar, faculty, Bharathidasan Institute of Management, Tiruchi, detailed the background for introduction of minimum wages in countries across the globe.

With nearly 45 crore of migrant labourers and 90 crore of employees in informal sector in India, every one should have a role in production, Prof. Suriyakumar said, quoting Indian philosopher and economicst J. C. Kumarappa, in his lecture on ‘Labour Market Effect on Education’.

In his inaugural address, M. Selvam, Vice-Chancellor, opined that minimum wage to workers would not reduce employment, as long as the demand exists, while advocating exploration of uncharted areas.

The event on Nobel Prize has been initiated as an innovative practice to create awareness among students about the Nobel Prize, M. Selvam, Professor and Head, Department of Commerce and Financial Studies, Bharathidasan University, said, noting that ‘right job to right person’ would smoothen functioning of the job market.

The programme enabled about 100 students to look for every opportunity as a learning experience and be flexible to adapt to situations and succeed, Prof. Selvam said.

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