Demand shocks and employment adjustments: Does employment protection legislation create rigidity?

Abstract

With state‐level panel data from the Indian manufacturing sector for 2000–12, and labour turnover as a proxy for employment adjustments, the authors estimate differential effects of demand shocks on employment adjustment across states with high and low levels of EPL. They find that EPL does not hinder employment adjustment; the response of labour separation rates to negative demand shocks is relatively higher in states with high levels of EPL, and labour turnover is inversely associated with EPL, which may be viewed as indicative of the beneficial effects of EPL for both enterprises and workers.

Labor Reforms in Rajasthan: A Boon or a Bane?

“…A study on Gujarat's deregulatory reforms by Deakin and Haldar (2015) proposes very little evidence linking law deregulation to growth. In response to the belief that employment protection legislation restricts employment adjustment from demand shock, Sofi and Kunroo (2018) find no evidence from 2000-01 to 2011-12. Moreover, Rodgers and Menon (2013) find that employment adjustment and dispute settlement restrictions cause higher job quality for women.…”

Job Reallocation Dynamics in India: Evidence from Large Manufacturing Plants

“…An important factor that might moderate such a relationship is the labour regulation regime in the particular state-region. There is a large body of literature documenting the crucial role of labour regulations on the labour market in India (Besley and Burgess, 2004;Hasan et al, 2007;Ahsan and Pagés, 2009;Chaurey, 2015;Sapkal, 2016;Sofi and Kunroo, 2018). We attempt to extend the literature by studying the role of labour regulations on job reallocation in India.…”

“…NET s,r,k,t = NET s,r 12 The GHK index uses the indices by the Organisation for Economic Co-operation and Development (OECD, 2007), Besley and Burgess (2004), and the criticism of the latter by Bhattacharjea (2009) to classify states into flexible, rigid and neutral sets of the labour regulation regime based on the majority rule. The GHK index has been used in recent studies by Chaurey (2015) and Sofi and Kunroo (2018). 13 The original GHK index is limited to 15 major states.…”

Continuity and Changes in Megatendencies in Law (Theoretical and Legal Research Into Labor Law Norms)

“…Например, в том, что ст. 8 хартии основных прав Европейского сообщества (хартия EU-GR) подняла защиту персональных данных на уровень основного права ЕС и основополагающего регламента Европейского союза о защите персональных данных [1][2][3][4][5][6][7][8][9][10].…”