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Indian Labour Regulation and Its Impact on Unemployment: A Leximetric Study, 1970-2006

Sarkar, Prabirjit (2011): Indian Labour Regulation and Its Impact on Unemployment: A Leximetric Study, 1970-2006.

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Abstract

This paper analyses a new leximetric dataset on Indian labour law over a long period 1970-2006. There are five broad aspects of labour law such as Alternative employment contracts, Regulation of working time, Regulation of dismissal, Employee representation and Industrial action. Indian labour regulation is more concerned with the regulation of dismissal. It is more pro-labour than any of the four major OECD countries such as France, Germany, UK and USA. There is no evidence that more labour friendly regulation leads to more unemployment and industrial stagnation. Rather the direction of causality is from unemployment and output to labour regulation.

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