Can labour regulation hinder economic performance? Evidence from India

Timothy Besley and Robin Burgess

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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)
JEL-codes: H0 H1 I3 J5 K2 L5 L6 O2 O4 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2002-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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http://eprints.lse.ac.uk/3779/ Open access version. (application/pdf)

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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