Abstract:
A new dataset of 1,948 retail stores in India compiled by the World Bank's Enterprise Surveys shows that 27 percent of the stores report labor regulations as a problem for their business. Using these data we analyze the effect of labor regulation on employment at the store level. We find that stricter labor regulation has a strong negative effect on employment. Our estimates show that labor reforms are likely to increase employment by 22 percent of the current level for an average store.
More papers in Policy Research Working Paper Series from The World Bank Address: 1818 H Street, N.W., Washington, DC 20433 Contact information at EDIRC. Series data maintained by Roula I. Yazigi ().