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Indian Labour Regulation and Its Impact on Unemployment: A Leximetric Study, 1970-2006

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  • Sarkar, Prabirjit

Abstract

This paper analyses a new leximetric dataset on Indian labour law over a long period 1970-2006. There are five broad aspects of labour law such as Alternative employment contracts, Regulation of working time, Regulation of dismissal, Employee representation and Industrial action. Indian labour regulation is more concerned with the regulation of dismissal. It is more pro-labour than any of the four major OECD countries such as France, Germany, UK and USA. There is no evidence that more labour friendly regulation leads to more unemployment and industrial stagnation. Rather the direction of causality is from unemployment and output to labour regulation.

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File URL: http://mpra.ub.uni-muenchen.de/32929/
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File URL: http://mpra.ub.uni-muenchen.de/35553/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32929.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32929

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Keywords: labour law; employment; India;

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  1. Aditya Bhattacharjea, 2006. "Labour Market Regulation and Industrial Performance in India--A Critical Review of the Empirical Evidence," Working papers 141, Centre for Development Economics, Delhi School of Economics.
  2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert W., 1998. "Law and Finance," Scholarly Articles 3451310, Harvard University Department of Economics.
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Cited by:
  1. Sarkar, Prabirjit, 2011. "Does employment protection lead to unemployment? A panel data analysis of OECD countries, 1990-2008," MPRA Paper 35547, University Library of Munich, Germany.

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