Employment Protection Legislation and Plant-Level Productivity in India: = La législation sur la protection de l'emploi et la productivité des entreprises en Inde
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...
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| Format: | Elektronisch E-Book |
| Sprache: | English |
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Paris
OECD Publishing
2011
|
| Schriftenreihe: | OECD Economics Department Working Papers
no.917 |
| Schlagworte: | |
| Online-Zugang: | DE-862 DE-863 |
| Zusammenfassung: | 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. |
| Beschreibung: | 1 Online-Ressource (46 Seiten) 21 x 29.7cm. |
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| 245 | 1 | 0 | |a Employment Protection Legislation and Plant-Level Productivity in India |b = La législation sur la protection de l'emploi et la productivité des entreprises en Inde |c Sean, Dougherty, Verónica, Frisancho Robles and Kala, Krishna |
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| 520 | |a 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. | ||
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| spelling | Dougherty, Sean VerfasserIn aut Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde Sean, Dougherty, Verónica, Frisancho Robles and Kala, Krishna La législation sur la protection de l'emploi et la productivité des entreprises en Inde Paris OECD Publishing 2011 1 Online-Ressource (46 Seiten) 21 x 29.7cm. Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier OECD Economics Department Working Papers no.917 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. Employment Economics India Frisancho Robles, Verónica MitwirkendeR ctb Krishna, Kala MitwirkendeR ctb |
| spellingShingle | Dougherty, Sean Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde Employment Economics India |
| title | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde |
| title_alt | La législation sur la protection de l'emploi et la productivité des entreprises en Inde |
| title_auth | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde |
| title_exact_search | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde |
| title_full | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde Sean, Dougherty, Verónica, Frisancho Robles and Kala, Krishna |
| title_fullStr | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde Sean, Dougherty, Verónica, Frisancho Robles and Kala, Krishna |
| title_full_unstemmed | Employment Protection Legislation and Plant-Level Productivity in India = La législation sur la protection de l'emploi et la productivité des entreprises en Inde Sean, Dougherty, Verónica, Frisancho Robles and Kala, Krishna |
| title_short | Employment Protection Legislation and Plant-Level Productivity in India |
| title_sort | employment protection legislation and plant level productivity in india la legislation sur la protection de l emploi et la productivite des entreprises en inde |
| title_sub | = La législation sur la protection de l'emploi et la productivité des entreprises en Inde |
| topic | Employment Economics India |
| topic_facet | Employment Economics India |
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