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The Impact of Labor Market Regulations

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Author Info

  • Squire, Lyn
  • Suthiwart-Narueput, Sethaput

Abstract

This article investigates the impact of labor market regulations in a setting with incomplete compliance. It takes as its starting point the limited evidence regarding the distortionary costs of labor market regulations and argues that there may exist natural limits to the efficiency losses engendered by such regulations. The article reviews some stylized facts regarding labor market behavior, presents an analytical model that may explain such behavior, and provides a checklist for assessing the distortionary impact of regulations such as minimum wages. Copyright 1997 by Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Economic Review.

Volume (Year): 11 (1997)
Issue (Month): 1 (January)
Pages: 119-43

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Handle: RePEc:oup:wbecrv:v:11:y:1997:i:1:p:119-43

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References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Gelb, A & Knight, John B & Sabot, R H, 1991. "Public Sector Employment, Rent Seeking and Economic Growth," Economic Journal, Royal Economic Society, vol. 101(408), pages 1186-99, September.
  2. Alida Castillo Freeman & Richard B. Freeman, 1991. "Minimum Wages in Puerto Rico: Textbook Case of a Wage Floor?," NBER Working Papers 3759, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7408, October.
  2. César Calderón & Alberto Chong & Gianmarco León, 2006. "Institutional Enforcement, Labor-Market Rigidities, and Economic Performance," Research Department Publications 4492, Inter-American Development Bank, Research Department.
  3. repec:hal:cesptp:halshs-00112316 is not listed on IDEAS
  4. César Calderón & Alberto Chong & Rodrigo Valdés, 2004. "Normativa del mercado laboral y desigualdad del ingreso: elementos de juicio de un grupo de países," Research Department Publications 4376, Inter-American Development Bank, Research Department.
  5. César Calderón & Alberto Chong & Rodrigo Valdés, 2004. "Labor Market Regulations and Income Inequality: Evidence for a Panel of Countries," Research Department Publications 4375, Inter-American Development Bank, Research Department.
  6. Forteza, Alvaro & Rama, Martin, 2001. "Labor market"rigidity"and the success of economic reforms across more than one hundred countries," Policy Research Working Paper Series 2521, The World Bank.
  7. Yana van der Meulen Rodgers & Gunseli Berik, 2006. "Asia's Race to Capture Post-MFA Markets: A Snapshot of Labor Standards, Compliance, and Impacts on Competitiveness," Working Paper Series, Department of Economics, University of Utah 2006_02, University of Utah, Department of Economics.
  8. repec:wii:bpaper:bowp:049 is not listed on IDEAS
  9. Dessing, Maryke, 2004. "Implications for minimum-wage policies of an S-shaped labor-supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 543-568, April.
  10. Freeman, Richard B., 2010. "Labor Regulations, Unions, and Social Protection in Developing Countries," Handbook of Development Economics, Elsevier.
  11. Brown, K.D. & Deardorff, A.V. & Stern, R.M., 1997. "Trade and Labor Standards," Working Papers 394, Research Seminar in International Economics, University of Michigan.
  12. Taryn Dinkelman & Vimal Ranchhod, 2010. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," Working Papers 1254, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  13. Derk Bienen, 2002. "Mindestlohnreformen in Südamerika – ökonomische Rechtfertigung und praktische Umsetzung," Ibero America Institute for Econ. Research (IAI) Discussion Papers 090, Ibero-America Institute for Economic Research.
  14. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc.
  15. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Documents de travail 123, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.

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