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The Contribution of Labour Law to Economic Development & Growth

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  • Simon Deakin

Abstract

A review of theoretical, historical and quantitative empirical research on the economic effects of labour laws suggests that worker-protective labour regulation generates net positive outcomes for development and growth. Labour law should be seen as a developmental institution which has a symbiotic relationship to the rise of capitalism in the global north and is part of the transition to a market economy being experienced by today's low- and middle-income countries. Claims made for the desuetude of labour law's core mechanisms, including the standard employment relationship, are not borne about by recent evidence. The complex role played by labour regulation in the dynamics of capitalism would repay further investigation.

Suggested Citation

  • Simon Deakin, 2016. "The Contribution of Labour Law to Economic Development & Growth," Working Papers wp478, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp478
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    File URL: https://www.jbs.cam.ac.uk/cbrwp478/
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    References listed on IDEAS

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    1. Björn Bartling & Ernst Fehr & Klaus M. Schmidt, 2012. "Use and abuse of authority: A behavioral foundation of the employment relation," ECON - Working Papers 098, Department of Economics - University of Zurich.
    2. Deakin, Simon & Wilkinson, Frank, 2005. "The Law of the Labour Market: Industrialization, Employment, and Legal Evolution," OUP Catalogue, Oxford University Press, number 9780198152811.
    3. Simon Deakin & Antara Haldar, 2015. "How Should India Reforms Its Labour Laws?," Working Papers wp469, Centre for Business Research, University of Cambridge.
    4. Bartling, Björn & Fehr, Ernst & Schmidt, Klaus M., 2012. "Use and Abuse of Authority: A Behavioral Foundation of the Employment Relation," CEPR Discussion Papers 9231, C.E.P.R. Discussion Papers.
    5. Putterman, Louis, 1984. "On Some Recent Explanations of Why Capital Hires Labor," Economic Inquiry, Western Economic Association International, vol. 22(2), pages 171-187, April.
    6. Deakin, S. & Sarkar, P., 2011. "Indian Labour Law and its Impact on Unemployment, 1970-2006: A leximetric study," Working Papers wp428, Centre for Business Research, University of Cambridge.
    7. Björn Bartling & Ernst Fehr & Klaus M. Schmidt, 2013. "JEEA-FBBVA Lecture 2012: USE AND ABUSE OF AUTHORITY: A BEHAVIORAL FOUNDATION OF THE EMPLOYMENT RELATION," Journal of the European Economic Association, European Economic Association, vol. 11(4), pages 711-742, August.
    8. Mathias Siems & Simon Deakin, 2010. "Comparative Law and Finance: Past, Present, and Future Research," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 166(1), pages 120-140, March.
    9. Viral V. Acharya & Ramin P. Baghai & Krishnamurthy V. Subramanian, 2014. "Wrongful Discharge Laws and Innovation," The Review of Financial Studies, Society for Financial Studies, vol. 27(1), pages 301-346, January.
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    11. Sarkar, Prabirjit, 2011. "Indian Labour Regulation and Its Impact on Unemployment: A Leximetric Study, 1970-2006," MPRA Paper 32929, University Library of Munich, Germany.
    12. Simon DEAKIN & Jonas MALMBERG & Prabirjit SARKAR, 2014. "How do labour laws affect unemployment and the labour share of national income? The experience of six OECD countries, 1970–2010," International Labour Review, International Labour Organization, vol. 153(1), pages 1-27, March.
    13. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. Anamitra Roychowdhury, 2019. "Application of job security laws, workers’ bargaining power and employment outcomes in India," The Economic and Labour Relations Review, , vol. 30(1), pages 120-141, March.
    2. Antonio ALOISI & Valerio DE STEFANO, 2020. "Regulation and the future of work: The employment relationship as an innovation facilitator," International Labour Review, International Labour Organization, vol. 159(1), pages 47-69, March.
    3. Rolf, Steven & O'Reilly, Jacqueline & Meryon, Marc, 2022. "Towards privatized social and employment protections in the platform economy? Evidence from the UK courier sector," Research Policy, Elsevier, vol. 51(5).

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    More about this item

    Keywords

    Labour law; development; growth; inequality; leximetrics;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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