Can Labour Regulation Hinder Economic Performance? Evidence from India

Timothy Besley and Robin Burgess

STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: This paper investigates whether the industrial relations climate in Indian States has affected the pattern of manufacturing growth in the period 1958-92. We show that pro-worker amendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing. Regulating in a pro-worker direction is also associated with increases in urban poverty. This suggests that attempts to redress the balance of power between capital and labour can end up hurting the poor.

Keywords: Indian industrial relations; Industrial Disputes Act; manufacturing growth; pro-worker regulations; urban poverty; capital and labour. (search for similar items in EconPapers)
Date: 2002-02
New Economics Papers: this item is included in nep-dev and nep-lab
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Citations: View citations in EconPapers (58)

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Related works:
Journal Article: Can Labor Regulation Hinder Economic Performance? Evidence from India (2004)
Working Paper: Can Labour Regulation Hinder Economic Performance? Evidence from India (2002)
Working Paper: Can labour regulation hinder economic performance? Evidence from India (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stidep:33

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