Is Pro-Labor Law Pro-Women? Evidence from India
Masaryk University - Faculty of Law; Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)
March 1, 2011
I study the effects of state-level differences in labor regulation on labor market outcomes of women in India. Using a representative sample of urban households from 2005, I find that labor regulation has a large negative effect on women’s economic activity, mainly employment. My estimates suggest that a one standard deviation increase in the labor regulation measure decreases the probability of a woman being economically active by 3% to 4% — the implied decrease in female labor force is between 15% and 18%. The effects on men’s participation are around zero. I do not find labor regulation to have a significant effect on male wages or the gender wage gap. Finally, labor regulation is associated with women having less say at home and lower sex ratio.
Number of Pages in PDF File: 44
Keywords: gender gap, regulation of labor, employment
JEL Classification: J16, J23, K31working papers series
Date posted: September 14, 2010 ; Last revised: April 30, 2013
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