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

Author

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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.

Suggested Citation

  • Sarkar, Prabirjit, 2011. "Indian Labour Regulation and Its Impact on Unemployment: A Leximetric Study, 1970-2006," MPRA Paper 32929, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32929
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    File URL: https://mpra.ub.uni-muenchen.de/32929/1/MPRA_paper_32929.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/35553/1/MPRA_paper_35553.pdf
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    References listed on IDEAS

    as
    1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    2. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Simon Deakin, 2014. "Labour Law and Inclusive Development," Working Papers wp458, Centre for Business Research, University of Cambridge.
    2. 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.

    More about this item

    Keywords

    labour law; employment; India;

    JEL classification:

    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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