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Are labor regulations driving computer usage in India's retail stores ?

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  • Amin, Mohammad

Abstract

A recent survey of 1,948 retail stores in India conducted by the World Bank's Enterprise Surveys shows that 19 percent of the stores use computers for their business. In some states like Kerala, computer use is as high as 40 percent. Using this data the author finds labor regulation as an important determinant of computer use. His estimates suggest that when faced with burdensome labor regulations, the probability of using a computer rises by over 36 percentage points for an average store. These findings formally confirm a commonly held but untested view that labor regulation may be responsible for the spread of labor saving modern technology.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4274.

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Date of creation: 01 Jul 2007
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Handle: RePEc:wbk:wbrwps:4274

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Keywords: Labor Markets; Regulatory Regimes; Public Sector Regulation; Urban Economics; Public&Municipal Finance;

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  1. Alberto Alesina & Joseph Zeira, 2006. "Technology and Labor Regulations," NBER Working Papers 12581, National Bureau of Economic Research, Inc.
  2. Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, vol. 95(4), pages 1190-1213, September.
  3. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
  4. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
  5. Juan Botero & Simeon Djankov & Rafael Porta & Florencio C. Lopez-De-Silanes, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, MIT Press, vol. 119(4), pages 1339-1382, November.
  6. Timothy Besley & Robin Burgess, 2002. "Can labour regulation hinder economic performance? Evidence from India," LSE Research Online Documents on Economics 3779, London School of Economics and Political Science, LSE Library.
  7. repec:fth:prinin:455 is not listed on IDEAS
  8. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
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Cited by:
  1. Menon, Nidhiya, 2011. "Got Technology? The Impact of Computers and Cell Phones on Productivity in a Difficult Business Climate: Evidence from Firms with Female Owners in Kenya," IZA Discussion Papers 5419, Institute for the Study of Labor (IZA).
  2. Nidhiya Menon, 2010. "Obstacles to Business, Technology Use, and Firms with Female Principal Owners in Kenya," Working Papers 20, Brandeis University, Department of Economics and International Businesss School.

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