Arbeitspapier

Are all labor regulations equal? Evidence from Indian manufacturing

Using manufacturing data for India, this paper studies the economic effects of legal amendments on two types of labor laws: employment protection and labor dispute resolution legislation. We find that laws that increase employment protection or the cost of labor disputes substantially reduce registered sector employment and output. These laws do no seem to benefit workers either, as they do not increase the share of value added that goes to labor. Labor-intensive industries, such as textiles, are the hardest hit by amendments that increase employment protection while capital-intensive industries are the most affected by laws that increase the cost of labor dispute resolution. These adverse effects are not alleviated by the widespread and increasing use of contract labor, particularly in regards to employment. Results are robust to an alternative codification of legal amendments suggested by Bhattacharjea (2006).

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3394

Klassifikation
Wirtschaft
Labor Demand
Thema
Employment protection
labor dispute resolution
contract labor
employment
India
Arbeitsrecht
Kündigungsschutz
Schlichtung
Beschäftigungseffekt
Indien

Ereignis
Geistige Schöpfung
(wer)
Ahsan, Ahmad
Pagés, Carmen
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Ahsan, Ahmad
  • Pagés, Carmen
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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