Seminar
Can Labor Regulation Hinder Economic Performance? Evidence from India
Economics
| Speaker: | Tim Besley, London School of Economics |
|---|---|
| Date: | Friday 1 November 2002 |
| Time: | 16:15 |
| Location: | Room 106 Streatam Court |
Further details
(with Robin Burgess)
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 ammendments 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 labor can end up hurting the poor.