Is Pro-Labor Law Pro-Women? Evidence from India

Josef Montag

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: I study the effects of state-level differences in labor regulation on labor market outcomes of women in India. Using a representative sample of urban households from 2005, I find that labor regulation has a large negative effect on women’s economic activity, mainly employment. My estimates suggest that a one standard deviation increase in the labor regulation measure decreases the probability of a woman being economically active by 3% to 4%—the implied decrease in female labor force is between 15% and 18%. The effects on men’s participation are around zero. I do not find labor regulation to have a significant effect on male wages or on the gender wage gap. Finally, labor regulation is associated with women having less say at home and a lower sex ratio.

Keywords: gender gap; labor regulation; India (search for similar items in EconPapers)
JEL-codes: J16 J21 K31 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-lab and nep-law
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Working Paper: Is Pro-Labor Law Pro-Women? Evidence from India (2013)
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