Munich Personal RePEc Archive

Indian labour law and its impact on unemployment, 1970-2006: A leximetric study

Sarkar, Prabirjit and Deakin, Simon (2011): Indian labour law and its impact on unemployment, 1970-2006: A leximetric study.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_35553.pdf

Download (273kB) | Preview

Abstract

We analyse a recently developed leximetric dataset on Indian labour law over the period 1970 to 2006. Indian labour law is seen to be highly protective of workers’ interests by international standards, particularly in the area of dismissal regulation. We undertake a time-series econometric analysis to estimate the impact of the strengthening of labour laws on unemployment and industrial output in the formal economy. We find no evidence that pro-worker labour legislation leads to unemployment or industrial stagnation. Rather, pro-worker labour laws are associated with low unemployment, with the direction of causality running from unemployment and output to labour regulation

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.