The Resource Employment Protection Legislation and Plant-Level Productivity in India, Sean Dougherty, Verónica Frisancho Robles and Kala Krishna, (electronic resource)

Employment Protection Legislation and Plant-Level Productivity in India, Sean Dougherty, Verónica Frisancho Robles and Kala Krishna, (electronic resource)

Label
Employment Protection Legislation and Plant-Level Productivity in India
Title
Employment Protection Legislation and Plant-Level Productivity in India
Statement of responsibility
Sean Dougherty, Verónica Frisancho Robles and Kala Krishna
Creator
Contributor
Subject
Language
eng
Summary
Using plant-level data from the Annual Survey of Industries (ASI) for the fiscal years from 1998-99 through 2007-08, this study provides plant-level cross-state/time-series evidence of the impact of employment protection legislation (EPL) on total factor productivity (TFP) and labour productivity in India. Identification of the effect of EPL follows from a difference-in-differences estimator inspired by Rajan and Zingales (1998) that takes advantage of the state-level variation in labour regulation and heterogeneous industry characteristics. The fundamental identification assumption is that EPL is more likely to restrict firms operating in industries with higher labour intensity and/or higher sales volatility. Our results show that firms in labour intensive or more volatile industries benefited the most from labour reforms in their states. Our point estimates indicate that, on average, firms in labour intensive industries and in flexible labour markets have TFP residuals 14% higher than those registered for their counterparts in states with more stringent labour laws. However, no important differences are identified among plants in industries with low labour intensity when comparing states with high and low levels of EPL reform. Similarly, the TFP of plants in volatile industries and in states that experienced more pro-employer reforms is 11% higher than that of firms in volatile industries and in more restrictive states; however, the TFP residuals of plants in industries with low labour intensity are 11% lower in high EPL reform states than in states with lower levels of EPL reform. In sum, the evidence presented here suggests that the high labour costs and rigidities imposed through Indian federal labour laws are lessened by labour market reforms at the state level
Member of
Cataloging source
FR-PaOEC
http://library.link/vocab/creatorName
Dougherty, Sean M.
Government publication
international or intergovernmental publication
Index
no index present
Literary form
non fiction
Nature of contents
dictionaries
http://library.link/vocab/relatedWorkOrContributorName
  • Frisancho Robles, Verónica
  • Krishna, Kala
Series statement
OECD Economics Department Working Papers,
Series volume
no.917
http://library.link/vocab/subjectName
  • Economics
  • Employment
  • India
Label
Employment Protection Legislation and Plant-Level Productivity in India, Sean Dougherty, Verónica Frisancho Robles and Kala Krishna, (electronic resource)
Instantiates
Publication
Antecedent source
not applicable
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
778836755
Dimensions
21 x 30 cm
Extent
1 online resource 47 pages
File format
one file format
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.1787/5kg0ndktrx46-en
Specific material designation
remote
System control number
(OCoLC)778836755
Label
Employment Protection Legislation and Plant-Level Productivity in India, Sean Dougherty, Verónica Frisancho Robles and Kala Krishna, (electronic resource)
Publication
Antecedent source
not applicable
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Control code
778836755
Dimensions
21 x 30 cm
Extent
1 online resource 47 pages
File format
one file format
Form of item
online
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.1787/5kg0ndktrx46-en
Specific material designation
remote
System control number
(OCoLC)778836755

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