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Is Pro-Labor Law Pro-Women? Evidence from India

  • Josef Montag

    ()

    (Faculty of Business and Economics, Mendel University in Brno)

This paper analyses the effects of state-level differences in labor regulation on labor market outcomes of women in India. I find that labor regulation has a large negative effect on women’s economic activity, mainly employment. A one standard deviation increase in the labor regulation measure decreases the probability of a woman being economically active by 3% to 4%—the implied decrease in female labor force is 15% to 18%. There is no significant effect on the gender wage gap. Finally, labor regulation is associated with women having less say at home and a lower sex ratio.

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Paper provided by Mendel University in Brno, Faculty of Business and Economics in its series MENDELU Working Papers in Business and Economics with number 2013-40.

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Length: 44
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:men:wpaper:40_2013
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  1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Juan Botero, 2003. "The Regulation of Labor," NBER Working Papers 9756, National Bureau of Economic Research, Inc.
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  3. Olivetti, Claudia & Petrongolo, Barbara, 2006. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," CEPR Discussion Papers 5506, C.E.P.R. Discussion Papers.
  4. Black, Sandra & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," CEPR Discussion Papers 3532, C.E.P.R. Discussion Papers.
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  7. Remco H. Oostendorp, 2009. "Globalization and the Gender Wage Gap," World Bank Economic Review, World Bank Group, vol. 23(1), pages 141-161, January.
  8. Prashant Bharadwaj & Leah K. Lakdawala, 2013. "Discrimination Begins in the Womb: Evidence of Sex-Selective Prenatal Investments," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 71-113.
  9. Ahsan, Ahmad & Pagés, Carmen, 2008. "Are All Labor Regulations Equal? Evidence from Indian Manufacturing," IZA Discussion Papers 3394, Institute for the Study of Labor (IZA).
  10. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-38, May.
  11. Ghazala Azmat & Maia Guell & Alan Manning, 2004. "Gender gaps in unemployment rates in OECD countries," LSE Research Online Documents on Economics 19995, London School of Economics and Political Science, LSE Library.
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  13. Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2003. "Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India," Economics Study Area Working Papers 59, East-West Center, Economics Study Area.
  14. Sandra E. Black & Philip E. Strahan, 2001. "The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry," American Economic Review, American Economic Association, vol. 91(4), pages 814-831, September.
  15. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-44, September.
  16. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization Evidenceon Poverty From India," IMF Working Papers 10/218, International Monetary Fund.
  17. 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.
  18. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 91-134, February.
  19. Ashenfelter, Orley & Hannan, Timothy, 1986. "Sex Discrimination and Product Market Competition: The Case of the Banking Industry," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 149-73, February.
  20. Dora L. Costa & Matthew E. Kahn, 2008. "Learning from the Past," NBER Chapters, in: Heroes and Cowards: The Social Face of War National Bureau of Economic Research, Inc.
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