The quality of the legal system and labor market performance around the world

Feldmann, Horst

doi:10.1007/s10657-008-9092-4

Cited by 6 publications

(2 citation statements)

References 30 publications

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“…Much of the empirical literature has been extended to analyse both-the impact of strict EPL on the firm's demand for temporary contract workers, where perfect compliance with labour regulation was implicitly assumed, (Pierre and Scarpetta 2013;Cuesta and Martin 2009;Autor 2003), and the impact of enforcement intensity on compliance with labour regulation that constrains the demand for temporary contract workers (Almeida and Carneiro 2012;Ronconi 2010;Di Tella and MacCulloch 2005). However, none of these studies have looked at a case of labour markets in developing countries where there is a weak compliance with labour laws, and the de facto level of regulation is lower than the de jure level (Feldmann 2009;Djankov and Ramalho 2009).…”

Section: Introductionmentioning

confidence: 99%

Labour law, enforcement and the rise of temporary contract workers: empirical evidence from India’s organised manufacturing sector

Sapkal

2015

Eur J Law Econ

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There is an intense debate on the impact of labour regulation in India today. Labour regulation in India differ state-wise and apply differently across types of workers (both regular and contract workers). This paper examines the joint effects of Employment Protection Legislation (EPL) and variable enforcement intensity on the growth in a size of temporary contract workers in the organised manufacturing sector. It uses the state level amendments to Industrial Dispute Act of 1947, and the average size of total number of labour inspectors for each state, as independent variables to capture the variation in labour regulations and enforcement intensity across thirty-one Indian states for the period 2000-2007. This paper argues that, average Indian firms located in strict EPL states hire differentially more temporary contract workers as compare to regular workers in response to variable enforcement intensity. Among other findings, the empirical analysis shows that firms prefer to employ excessive number of contract workers to circumvent firing and overall compliance costs of regular workers as stipulated by the Indian labour laws. Our results are robust to alternative specifications.

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Section: Introductionmentioning

confidence: 99%

Labour law, enforcement and the rise of temporary contract workers: empirical evidence from India’s organised manufacturing sector

Sapkal

2015

Eur J Law Econ

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“…However, institutional factors such as labour market regulations can induce factor misallocations that affect the DVAR of Chinese manufacturing firms. For example, labour market regulations have been found to reduce firms' employment (Feldmann, 2009), increase employment adjustment costs (Wang et al., 2021) and generate substantial productivity losses (Hsieh & Klenow, 2009). China's household registration system (hukou) has created a highly rigid labour market, with a labour surplus in rural areas and a labour shortage in urban regions (Rachel Ngai et al., 2019).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Labour market flexibility and domestic value‐added trade: Evidence from the hukou reform in China

Wang,

Lin,

Huan

et al. 2023

World Economy

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Chinese manufacturing firms have seen an intriguing rise in domestic value‐added content in exports (DVAR) despite their deepening engagement in global value chains (GVCs) since 2001. This article investigates whether the rise of DVAR in China can be attributed to changes in labour market flexibility by using the staggered relaxation of Chinese hukou policies across cities and time as a quasi‐natural experiment. Using combined firm‐level data and transaction‐level trade data from 2000 to 2013, this article finds that the relaxation of labour market flexibility through hukou reform has significantly increased the domestic value‐added exports of Chinese firms. Firms exposed to hukou reform tend to allow for more employment adjustment and substitute domestic materials for imported intermediates, which raises the DVAR of Chinese manufacturing firms. This effect is more prominent for non‐SOE firms, foreign‐invested firms, processing firms, coastal firms and firms in the upstream sectors of GVCs.

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Court-packing and judicial manipulation

Callais,

Mkrtchian

2024

European Journal of Political Economy

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The quality of the legal system and labor market performance around the world

Abstract: Employment, Legal system, Rule of law, Unemployment, E24, J23, J64, K00, K40,

Cited by 6 publications

References 30 publications

Labour law, enforcement and the rise of temporary contract workers: empirical evidence from India’s organised manufacturing sector

Labour law, enforcement and the rise of temporary contract workers: empirical evidence from India’s organised manufacturing sector

Labour market flexibility and domestic value‐added trade: Evidence from the hukou reform in China

Court-packing and judicial manipulation

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