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

CERGE-EI Working Paper Series No. 488

49 Pages Posted: 16 Oct 2013 Last revised: 13 Jun 2015

See all articles by Josef Montag

Josef Montag

Charles University, Faculty of Law - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2013

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 on the gender wage gap. Finally, labor regulation is associated with women having less say at home and a lower sex ratio.

Keywords: gender gap, labor regulation, India

JEL Classification: J16, J21, K31

Suggested Citation

Montag, Josef, Is Pro-Labor Law Pro-Women? Evidence from India (October 1, 2013). CERGE-EI Working Paper Series No. 488. Available at SSRN: https://ssrn.com/abstract=2339133 or http://dx.doi.org/10.2139/ssrn.2339133

Josef Montag (Contact Author)

Charles University, Faculty of Law - Department of Economics ( email )

nam. Curieovych 7
Prague 1, 11640
Czech Republic

Register to save articles to
your library

Register

Paper statistics

Downloads
30
Abstract Views
339
PlumX Metrics