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

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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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    References listed on IDEAS

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    10. 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.
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    Cited by:

    1. Zoe Adams & Louise Bishop & Simon Deakin & Colin Fenwick & Sara Martinsson Garzelli & Giudy Rusconi & Centre for Business Research, 2018. "The Economic Significance of Laws Relating to Employment Protection & Different Forms of Employment: Analysis of a Panel of 117 Countries, 1990-2013," Working Papers wp500, Centre for Business Research, University of Cambridge.
    2. K. R. Shyam Sundar, 2017. "A different reforms agenda: Reform of trade unions!," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(2), pages 233-252, June.
    3. Simon Deakin, 2014. "Labour Law and Inclusive Development," Working Papers wp458, Centre for Business Research, University of Cambridge.
    4. Suzanne Kingston & Zizhen Wang & Edwin Alblas & Micheál Callaghan & Julie Foulon & Valesca Lima & Geraldine Murphy, 2022. "The democratisation of European nature governance 1992–2015: introducing the comparative nature governance index," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(1), pages 27-48, March.
    5. Sean COONEY, 2022. "Legal segmentation in China, India, Malaysia and Viet Nam," International Labour Review, International Labour Organization, vol. 161(4), pages 573-591, December.
    6. Prateek Kukreja & Seema Bathla, 2018. "Labour Regulations and Informalisation in India’s Organised Manufacturing: A Case of Textile and Clothing," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(3), pages 473-492, September.
    7. Sher Singh Verick, 2017. "The puzzles and contradictions of the Indian labour market: What will the future of work look like?," ASARC Working Papers 2017-02, The Australian National University, Australia South Asia Research Centre.
    8. Simon Deakin, 2018. "The Use of Quantitative Methods in Labour Law Research: An Assessment and Reformulation," Working Papers wp495, Centre for Business Research, University of Cambridge.
    9. Masahiro Kawai & Henrik Schmiegelow, 2013. "Financial Crisis as a Catalyst of Legal Reforms : The Case of Asia," Governance Working Papers 23852, East Asian Bureau of Economic Research.
    10. Irfan Ahmad SOFI & Mohd Hussain KUNROO, 2018. "Demand shocks and employment adjustments: Does employment protection legislation create rigidity?," International Labour Review, International Labour Organization, vol. 157(3), pages 461-480, September.
    11. Sher Singh Verick, 2016. "Manufacturing and jobs: is India different?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(1), pages 57-84, March.
    12. Zoe Adams & Parisa Bastani & Louise Bishop & Simon Deakin, 2017. "The CBR-LRI Dataset: Methods, Properties & Potential of Leximetric Coding of Labour Laws," Working Papers wp489, Centre for Business Research, University of Cambridge.
    13. Simon Deakin & Shelley Marshall & Sanjay Pinto, 2020. "Labour Laws, Informality, and Development: Comparing India and China," Working Papers wp518, Centre for Business Research, University of Cambridge.
    14. Simon Deakin, 2016. "The Contribution of Labour Law to Economic Development & Growth," Working Papers wp478, Centre for Business Research, University of Cambridge.
    15. Diti Goswami & Sourabh Bikas Paul, 2020. "Labor Reforms in Rajasthan: A boon or a bane?," Papers 2012.01016, arXiv.org.
    16. Simon Deakin & Colin Fenwick & Prabirjit Sarkar, 2013. "Labour Law & Inclusive Development: the Economic Effects of Industrial Relations Laws in Middle-Income Countries," Working Papers wp447, Centre for Business Research, University of Cambridge.
    17. Simon Deakin & Antara Haldar, 2015. "How Should India Reforms Its Labour Laws?," Working Papers wp469, Centre for Business Research, University of Cambridge.
    18. 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.
    19. Keshab Das, 2017. "Labour market resilience in India: conceptual and policy issues," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(2), pages 155-174, June.

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    More about this item

    Keywords

    labour law; employment; India;
    All these keywords.

    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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