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Labor regulations in developing countries : a review of the evidence and directions for future research

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Author Info

  • Boeri, Tito
  • Helppie, Brooke
  • Macis, Mario

Abstract

This paper focuses on minimum wages (MW), mandated benefits (MB), employment protection legislation (EPL), and unemployment insurance benefit systems (UIB). Even though different institutions might try to accomplish the same goal(s), the mechanisms through which each regulation interacts with market forces and affects the behavior of workers and firms are different. Although the focus of this paper is on the effects of labor regulations in developing countries, the author's refer to the evidence from developed countries where relevant, especially when no evidence from developing countries is available; and the author's believe the theory or methods could be fruitfully applied in the study of developing economies as well. This paper builds a search and matching model, estimates its structural parameters, and uses the estimates to determine the unemployment and welfare effects of the minimum wage. This structural approach allows one to estimate the total (workers and employers) welfare effect of a policy, which is arguably the most relevant metric to evaluate a policy intervention.

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File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/11/05/000333038_20081105004618/Rendered/PDF/463060NWP0Box31DiscussionPaper00833.pdf
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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 46306.

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Date of creation: 01 Oct 2008
Date of revision:
Handle: RePEc:wbk:hdnspu:46306

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Related research

Keywords: Labor Markets; Labor Policies; Economic Theory&Research; Labor Standards; Markets and Market Access;

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Citations

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Cited by:
  1. World Bank, 2010. "Turkey - Country Economic Memorandum Informality : Causes, Consequences, Policies," World Bank Other Operational Studies 2843, The World Bank.
  2. Parsons, Donald O., 2011. "Mandated Severance Pay and Firing Cost Distortions: A Critical Review of the Evidence," IZA Discussion Papers 5776, Institute for the Study of Labor (IZA).
  3. Gamberoni, Elisa & Von Uexkull, Erik & Weber, Sebastian, 2010. "The Roles of Openness and Labor Market Institutions for Employment Dynamics during Economic Crises," World Bank - Economic Premise, The World Bank, issue 29, pages 1-5, August.
  4. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
  5. Anastasia Koutsomanoli-Filippaki & Emmanuel Mamatzakis, 2013. "How labour market regulation shapes bank performance in EU-15 countries?," Working Papers 162, Bank of Greece.
  6. Almeida, Rita K. & Susanli, Z. Bilgen, 2011. "Firing Regulations and Firm Size in the Developing World: Evidence from Differential Enforcement," IZA Discussion Papers 6006, Institute for the Study of Labor (IZA).
  7. Fernando Borraz & Nicolás Gonzalez Pampillón, 2011. "Assessing the Distributive Impact of More than Doubling the Minimum Wage: The Case of Uruguay," Documentos de Trabajo (working papers) 1711, Department of Economics - dECON.
  8. repec:hal:wpaper:halshs-00630096 is not listed on IDEAS
  9. Kuddo, Arvo, 2009. "Labor laws in Eastern European and Central Asian countries : minimum norms and practices," Social Protection Discussion Papers 51698, The World Bank.
  10. Parsons, Donald O., 2011. "Double-Sided Moral Hazard in Job Displacement Insurance Contracts," IZA Discussion Papers 6003, Institute for the Study of Labor (IZA).
  11. Rita Almeida & Pedro Carneiro, Renata Narita, 2013. "Producing Higher Quality Jobs: Enforcement of Mandated Benefits across Brazilian Cities between 1996-2007," Working Papers, Department of Economics 2013_22, University of São Paulo (FEA-USP).
  12. Cazes, Sandrine & Verick, Sher, 2010. "What role for labour market policies and institutions in development? : enhancing security in developing countries and emerging economies," ILO Working Papers 460940, International Labour Organization.
  13. Hansen, Ellen & Avila, Zulum, 2012. "Preliminary assessment of training and retraining programmes implemented in response to the Great Recession :," ILO Working Papers 468419, International Labour Organization.
  14. Michael Knogler, 2010. "Demographischer Wandel, Arbeitsmarktpartizipation und Sozialsysteme in den neuen EU-Mitgliedsländern : Absicherung bei Nicht-Beschäftigung," Memoranda - Policy Papers 49, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  15. Angel-Urdinola, Diego F. & Kuddo, Arvo, 2010. "Key characteristics of employment regulation in the Middle East and North Africa," Social Protection Discussion Papers 55674, The World Bank.
  16. Lionel Fontagné & Michela Limardi, 2011. "The Outcome of NGOs' Activism in Developing Countries under Visibility Constraint," PSE Working Papers halshs-00630096, HAL.
  17. Cazes, Sandrine, 2009. "Labour market policies in times of crisis," ILO Working Papers 434163, International Labour Organization.

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