IDEAS home Printed from https://ideas.repec.org/p/eti/polidp/25016.html

Compliance Costs of Government Rules and Regulations

Author

Listed:
  • Masayuki MORIKAWA

Abstract

This study estimates the compliance costs of government rules and regulations based on a survey of Japanese workers. The results reveal the following key findings. First, nearly half of all workers engage in tasks related to regulatory compliance. Second, nearly 20% of total labor input is devoted to compliance tasks, implying a significant negative impact on macroeconomic productivity. Third, engaging in compliance tasks is associated with perceptions of workplace understaffing and frequency of sudden overtime. These findings suggest that reducing and streamlining such work has the potential to enhance both productivity and the well-being of workers.

Suggested Citation

  • Masayuki MORIKAWA, 2025. "Compliance Costs of Government Rules and Regulations," Policy Discussion Papers 25016, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:polidp:25016
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/pdp/25p016.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luis Garicano & Claire Lelarge & John Van Reenen, 2016. "Firm Size Distortions and the Productivity Distribution: Evidence from France," American Economic Review, American Economic Association, vol. 106(11), pages 3439-3479, November.
    2. Pellegrino, Bruno & Zheng, Geoffery, 2024. "Quantifying the impact of red tape on investment: A survey data approach," Journal of Financial Economics, Elsevier, vol. 152(C).
    3. Omar Al‐Ubaydli & Patrick A. McLaughlin, 2017. "RegData: A numerical database on industry‐specific regulations for all United States industries and federal regulations, 1997–2012," Regulation & Governance, John Wiley & Sons, vol. 11(1), pages 109-123, March.
    4. John Dawson & John Seater, 2013. "Federal regulation and aggregate economic growth," Journal of Economic Growth, Springer, vol. 18(2), pages 137-177, June.
    5. Ewens, Michael & Xiao, Kairong & Xu, Ting, 2024. "Regulatory costs of being public: Evidence from bunching estimation," Journal of Financial Economics, Elsevier, vol. 153(C).
    6. Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, productivity and growth: OECD evidence [‘A model of growth through creative destruction’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 18(36), pages 9-72.
    7. repec:bla:ecpoli:v:18:y:2003:i:36:p:9-72 is not listed on IDEAS
    8. Joseph Kalmenovitz & Ralph Koijen, 2023. "Regulatory Intensity and Firm-Specific Exposure," The Review of Financial Studies, Society for Financial Studies, vol. 36(8), pages 3311-3347.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masayuki Morikawa, 2023. "Compliance costs and productivity: an approach from working hours," Journal of Regulatory Economics, Springer, vol. 63(3), pages 117-137, June.
    2. Masayuki MORIKAWA, 2022. "Compliance Costs of Regulations and Productivity," Policy Discussion Papers 22025, Research Institute of Economy, Trade and Industry (RIETI).
    3. Francesco Trebbi & Miao Ben Zhang, 2022. "The Cost of Regulatory Compliance in the United States," NBER Working Papers 30691, National Bureau of Economic Research, Inc.
    4. McLaughlin, Patrick & Potts, Jason, 2019. "RegData: Australia," Working Papers 10062, George Mason University, Mercatus Center.
    5. Dustin Chambers & Patrick A. McLaughlin & Oliver Sherouse, 2023. "Regulation, entrepreneurship, and dynamism," Empirical Economics, Springer, vol. 64(5), pages 2449-2466, May.
    6. Andrea Cintolesi & Sauro Mocetti & Giacomo Roma, 2024. "Productivity and entry regulation: evidence from the universe of firms," Temi di discussione (Economic working papers) 1455, Bank of Italy, Economic Research and International Relations Area.
    7. Michelson, Noam, 2023. "The revolving door of former civil servants and firm value: A comprehensive approach," European Journal of Political Economy, Elsevier, vol. 79(C).
    8. James Broughel & Robert W. Hahn, 2022. "The impact of economic regulation on growth: Survey and synthesis," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 448-469, April.
    9. Stoyanov, Andrey & Zubanov, Nick, 2025. "Exposure to Regulation and Income Inequality in Local Labor Markets: Evidence from the U.S. over the Past Half-Century," IZA Discussion Papers 17820, Institute of Labor Economics (IZA).
    10. Azevedo, Alcino & Colak, Gonul & El Kalak, Izidin & Tunaru, Radu, 2024. "The timing of voluntary delisting," Journal of Financial Economics, Elsevier, vol. 155(C).
    11. José Libardo Mejía Ciro & Jacobo Campo Robledo, 2024. "Acumulación regulatoria y crecimiento económico: una aproximación empírica para Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 98(6), pages 141-162.
    12. Dan Andrews & Chiara Criscuolo & Peter N. Gal, 2019. "The best versus the rest: divergence across firms during the global productivity slowdown," CEP Discussion Papers dp1645, Centre for Economic Performance, LSE.
    13. Ince, Baris, 2024. "How do regulatory costs affect mergers and acquisitions decisions and outcomes?," Journal of Banking & Finance, Elsevier, vol. 163(C).
    14. Nicky Rogge & Alena Kolyaseva, 2022. "Measuring and comparing World Bank regions’ ‘ease of doing business’ opportunity sets," Journal of Productivity Analysis, Springer, vol. 57(2), pages 131-155, April.
    15. Chambers, Dustin, 2021. "Toward a Formalization of Policy Analytics," Working Papers 11019, George Mason University, Mercatus Center.
    16. Ash, Elliott & Morelli, Massimo & Vannoni, Matia, 2022. "More Laws, More Growth? Evidence from U.S. States," CEPR Discussion Papers 15629, C.E.P.R. Discussion Papers.
    17. Dustin Chambers & Courtney A. Collins & Alan Krause, 2019. "How do federal regulations affect consumer prices? An analysis of the regressive effects of regulation," Public Choice, Springer, vol. 180(1), pages 57-90, July.
    18. Lv, Xiaofeng & Yang, Yifan & Lu, Yue & Hong, Liming, 2025. "Deviation signs-based bunching methods," Economic Modelling, Elsevier, vol. 143(C).
    19. Fullenbaum, Richard & Richards, Tyler, 2020. "The Impact of Regulatory Growth on Operating Costs," Working Papers 10308, George Mason University, Mercatus Center.
    20. Henk Kox & George van Leeuwen, 2012. "Dynamic market selection in EU business services," CPB Discussion Paper 210, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:polidp:25016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.