Can labour regulation hinder economic performance? Evidence from India

Besley, Timothy ORCID: 0000-0002-8923-6372 and Burgess, Robin ORCID: 0009-0002-1187-3248 (2002) Can labour regulation hinder economic performance? Evidence from India. . Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

This paper investigates whether the industrial relations climate in Indian States has affected the pattern of manufacturing growth in the period 1958-92. We show that pro-worker amendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing. Regulating in a pro-worker direction is also associated with increases in urban poverty. This suggests that attempts to redress the balance of power between capital and labour can end up hurting the poor.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk/
Additional Information:	© 2002 the authors
Divisions:	Economics STICERD
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor K Law > K Law (General)
JEL classification:	H - Public Economics > H0 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity K - Law and Economics > K2 - Regulation and Business Law L - Industrial Organization > L5 - Regulation and Industrial Policy J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining I - Health, Education, and Welfare > I3 - Welfare and Poverty L - Industrial Organization > L6 - Industry Studies: Manufacturing H - Public Economics > H1 - Structure and Scope of Government O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy
Date Deposited:	10 Mar 2008 11:46
Last Modified:	11 Dec 2024 18:33
URI:	http://eprints.lse.ac.uk/id/eprint/3779

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