How Should India Reforms Its Labour Laws?

Simon Deakin and Antara Haldar

Working Papers from Centre for Business Research, University of Cambridge

Abstract: We examine the current policy debate around the reform of labour laws in India, which has been stimulated in part by the success of the Gujarat model of economic development. Gujarat's deregulatory reforms have included changes to the legal regime governing employment terminations, which could form a basis for a change in national-level labour laws. Evidence linking labour law deregulation to growth, however, is weak, whether the focus is on India or the experience of other countries. Building labour market institutions is a long-term process which requires investment in state capacity for the management of risks associated with the transition to a formal economy.

Keywords: Labour law; institutions; India; law reform; Gujarat model (search for similar items in EconPapers)
JEL-codes: J53 J58 K31 (search for similar items in EconPapers)
Date: 2015-03
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Citations: View citations in EconPapers (6)

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