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The unequal effects of liberalization: evidence from dismantling the License Raj in India

Aghion, Philippe, Burgess, Robin, Redding, Stephen and Zilibotti, Fabrizio (2008) The unequal effects of liberalization: evidence from dismantling the License Raj in India. American Economic Review, 98 (4). pp. 1397-1412. ISSN 0002-8282

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Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj a system of central controls regulating entry and production activity in this sector vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.

Item Type: Article
Official URL: http://www.aeaweb.org/aer/index.php
Additional Information: © 2008 The American Economic Association
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Journal of Economic Literature Classification System: J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J50 - General
L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy; Sectoral Planning Methods
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 15 Apr 2011 15:36
URL: http://eprints.lse.ac.uk/35679/

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