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Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India / Rana Hasan, Devashish Mitra, K.V. Ramaswamy.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Hasan, Rana.
Contributor:
National Bureau of Economic Research.
Mitra, Devashish.
Ramaswamy, K.V.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9879.
NBER working paper series no. w9879
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Trade Reforms, Labor Regulations and Labor-Demand Elasticities
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2003.
Summary:
Using industry-level data disaggregated by states, this paper finds a positive impact of trade liberalization on labor-demand elasticities in the Indian manufacturing sector. These elasticities turn out to be negatively related to protection levels that vary across industries and over time. Furthermore, we find that these elasticities are not only higher for Indian states with more flexible labor regulations, they are also impacted to a larger degree by trade reforms. Finally, we find that after the reforms, volatility in productivity and output gets translated into larger wage and employment volatility, theoretically a possible consequence of larger labor-demand elasticities.
Notes:
Print version record
August 2003.

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