Are All Labor Regulations Equal? Evidence from Indian Manufacturing

Taking advantage of variation across Indian states in labor reforms, this paper studies the economic effects of labor dispute resolution legislation (DL) and employment protection legislation (EPL) in the manufacturing sector. We find that laws that increase the cost of dispute resolution or employm...

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Main Authors:	Ahsan, Ahmad, Pages, Carmen
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Standards: Public Policy J880 Labor Law K310
Online Access:	http://hdl.handle.net/10986/5451

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recordtype	oai_dc
spelling	okr-10986-54512021-04-23T14:02:22Z Are All Labor Regulations Equal? Evidence from Indian Manufacturing Ahsan, Ahmad Pages, Carmen Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Standards: Public Policy J880 Labor Law K310 Taking advantage of variation across Indian states in labor reforms, this paper studies the economic effects of labor dispute resolution legislation (DL) and employment protection legislation (EPL) in the manufacturing sector. We find that laws that increase the cost of dispute resolution or employment protection substantially reduce registered sector employment and output, although the cost of industrial dispute regulation on output is larger. There is evidence of strong complementarities on labor laws: The output or employment costs of EPL are larger in states and periods where it is more difficult to resolve disputes, and not very important when such costs are low. Workers do not benefit from EPL or DL, as they do not increase the labor share or the wage bill, although EPL has a small positive effect on earnings per worker. 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. 2012-03-30T07:32:53Z 2012-03-30T07:32:53Z 2009 Journal Article Journal of Comparative Economics 01475967 http://hdl.handle.net/10986/5451 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Standards: Public Policy J880 Labor Law K310
spellingShingle	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Standards: Public Policy J880 Labor Law K310 Ahsan, Ahmad Pages, Carmen Are All Labor Regulations Equal? Evidence from Indian Manufacturing
geographic_facet	India
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Taking advantage of variation across Indian states in labor reforms, this paper studies the economic effects of labor dispute resolution legislation (DL) and employment protection legislation (EPL) in the manufacturing sector. We find that laws that increase the cost of dispute resolution or employment protection substantially reduce registered sector employment and output, although the cost of industrial dispute regulation on output is larger. There is evidence of strong complementarities on labor laws: The output or employment costs of EPL are larger in states and periods where it is more difficult to resolve disputes, and not very important when such costs are low. Workers do not benefit from EPL or DL, as they do not increase the labor share or the wage bill, although EPL has a small positive effect on earnings per worker. 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.
format	Journal Article
author	Ahsan, Ahmad Pages, Carmen
author_facet	Ahsan, Ahmad Pages, Carmen
author_sort	Ahsan, Ahmad
title	Are All Labor Regulations Equal? Evidence from Indian Manufacturing
title_short	Are All Labor Regulations Equal? Evidence from Indian Manufacturing
title_full	Are All Labor Regulations Equal? Evidence from Indian Manufacturing
title_fullStr	Are All Labor Regulations Equal? Evidence from Indian Manufacturing
title_full_unstemmed	Are All Labor Regulations Equal? Evidence from Indian Manufacturing
title_sort	are all labor regulations equal? evidence from indian manufacturing
publishDate	2012
url	http://hdl.handle.net/10986/5451
_version_	1764395091852525568

Are All Labor Regulations Equal? Evidence from Indian Manufacturing

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