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Costing, Comparing and Competing Developing an Approach to the Benchmarking of Labour Market Regulation

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Author Info
Paul Benjamin
Jan Theron () (Cheadle, Thompson & Haysom Inc Attorneys & Professor of Law, University of Cape Town)
Abstract

Abstract: The World Bank’s Doing Business survey seeks to measure and compare the costs to business of various types of regulation, including labour regulation. As such it is an important driver of labour market ‘reform’ globally and in South Africa. It may also be encouraging a tendency of different systems of regulation to converge. Focussing on labour regulation, the study considers the validity of endeavours to measure labour regulation, and identifies a number of methodological problems that constrain any such endeavour. It then focuses specifically on the methodology utilised in the Doing Business survey, and its results for South Africa. It presents evidence that certain scores arrived at in the case of South Africa are incorrect, materially affecting South Africa’s ranking in terms of the survey. These errors can be attributed to shortcoming in the survey’s methodology as well as the simplistic conceptions of law reflected in the surveys. This finding does not imply endeavours to measure the costs of regulation are without value. Instead the study advocates developing different indicators to measure the impact of labour regulation, and drawing on existing data and research to arrive at more objective results.

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File URL: http://www.commerce.uct.ac.za/research_units/dpru/WorkingPapers/PDF_Files/WP_07-131.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 96107.

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Length: 57 pages
Date of creation: Nov 2007
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, November2007, pages 1-57
Handle: RePEc:ctw:wpaper:96107

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Related research
Keywords: South Africa: labour regulation; Doing Business Survey;

Find related papers by JEL classification:
A1 - General Economics and Teaching - - General Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Janine Berg & Christoph Ernst & Peter Auer, 2006. "Meeting the Employment Challenge: Argentina, Brazil and Mexico in the global economy," Books on Employment Analysis and Research, International Labour Office, Employment Analysis and Research Unit, edition 127, number ebook9.
  2. Janine Berg & Sandrine Cazes, 2007. "The Doing Business Indicators: Measurement issues and political implications," Economic and Labour Market Papers 2007-06, International Labour Office. [Downloadable!]
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