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Is Pro-Labor Law Pro-Women? Evidence from India


Josef Montag


Masaryk University - Faculty of Law; Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

March 1, 2011


Abstract:     
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, K31

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Date posted: September 14, 2010 ; Last revised: April 30, 2013

Suggested Citation

Montag, Josef, Is Pro-Labor Law Pro-Women? Evidence from India (March 1, 2011). Available at SSRN: http://ssrn.com/abstract=1676914 or http://dx.doi.org/10.2139/ssrn.1676914

Contact Information

Josef Montag (Contact Author)
Masaryk University - Faculty of Law ( email )
Veveri 70
Brno, 61180
Czech Republic
Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )
P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic
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