Are All Labor Regulations Equal? Assessing the Effects of Job Security, Labor Dispute, and Contract Labor Laws in India

This paper studies the economic effects of legal amendments on different types of labor laws. It examines the effects of amendments to labor dispute laws and amendments to job security legislation. It also identifies the effects of legal amendments related to the most contentious regulation of all-Chapter Vb of the Industrial Disputes Act-which stipulates that firms with 100 or more employees cannot retrench workers without government authorization. The analysis finds that laws that increase job security or increase the cost of labor disputes substantially reduce registered sector employment and output but do not increase the labor share. Labor-intensive industries, such as textiles, are the hardest hit by laws that increase job security while capital-intensive industries are most affected by higher labor dispute resolution costs. The paper concludes that widespread and increasing use of contract labor may have brought some output and employment gains but did not make up for the adverse effects of job security and dispute resolution laws.

Bibliographic Details

Main Authors:	Ahsan, Ahmad, Pagés, Carmen
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2007-06
Subjects:	ACTS, ADJUSTMENT COSTS, AMENDMENT, BARGAINING POWER, CODES, CONDITIONS OF WORK, CONTRACT LABOR, CONTRACT LABOUR, COSTS OF REGULATION, DISCHARGE, DISMISSAL, ECONOMIC ACTIVITY, ECONOMIC EFFECTS, EFFECTS OF REGULATIONS, EMPLOYERS, EMPLOYMENT, EMPLOYMENT EFFECTS, EMPLOYMENT SECURITY, EQUALITY, FIRING, FIRM EXIT, HIRING, INTERNATIONAL STANDARDS, JOB CREATION, JOB DESTRUCTION, JOB SECURITY, JOB SECURITY REGULATIONS, JOBS, LABOR ADJUSTMENT, LABOR DEMAND, LABOR DISPUTES, LABOR FORCE, LABOR INTENSITY, LABOR LAW, LABOR LAWS, LABOR LEGISLATION, LABOR MARKET, LABOR MARKET PERFORMANCE, LABOR MARKET REGULATIONS, LABOR MARKETS, LABOR POLICIES, LABOR PRODUCTIVITY, LABOR REGULATIONS, LABOR SHARE, LABOUR, LABOUR BUREAU, LABOUR REGULATION, LAW ENFORCEMENT, LAYOFF, LAYOFFS, LEGISLATIVE AUTHORITY, LEGISLATIVE CHANGES, LOCKOUTS, MANUFACTURING SECTOR, MINIMUM WAGES, NET EMPLOYMENT, NET EMPLOYMENT GAINS, OCCUPATIONS, PERMANENT WORKERS, PIECES OF REGULATION, PLANT CLOSURES, PLANT PRODUCTIVITY, POLICY CHANGE, POLICY PERSPECTIVE, PREVIOUS STUDIES, PUBLIC SAFETY, PUBLIC UTILITIES, REGULAR WORKERS, REGULATORY MEASURE, REGULATORY MEASURES, RETIREMENT, SOCIAL SECURITY, STATE BUDGET, STATE LAWS, STRIKES, TEMPORARY WORKERS, TOTAL EMPLOYMENT, TYPES OF REGULATIONS, UNIONS, WAGE BILL, WORKER, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2007/06/7726776/all-labor-regulations-equal-assessing-effects-job-security-labor-dispute-contract-labor-laws-india http://hdl.handle.net/10986/7419
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