Can labor regulation hinder economic performance? Evidence from India

• 成果类型: Article
• 署名作者: Besley, T; Burgess, R
• 署名单位: University of London; London School Economics & Political Science; University of London; London School Economics & Political Science
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/003355304772839533
• 发表日期: 2004
• 页码: 91-134
• 关键词: unemployment

摘要

This paper investigates whether the industrial relations climate in Indian states has affected the pattern of manufacturing growth in the period 1958-1992. We show that states which amended the Industrial Disputes Act in a pro-worker direction experienced lowered output, employment, investment, and productivity in registered or formal manufacturing. In contrast, output in unregistered or informal manufacturing increased. Regulating in a pro-worker direction was also associated with increases in urban poverty. This suggests that attempts to redress the balance of power between capital and labor can end up hurting the poor.