Job security regulations and the dynamic demand for industrial labor in India and Zimbabwe

@inproceedings{Fallon1989JobSR,
  title={Job security regulations and the dynamic demand for industrial labor in India and Zimbabwe},
  author={Peter R. Fallon and Robert E. B. Lucas},
  year={1989}
}
Abstract Government permission is required to dismiss or lay off even a single worker in India and Zimbabwe. Dynamic labor demand equations, derived from a CES cost minimization model, are estimated for 64 manufacturing industries in these two countries. The data reveal a substantial reduction in demand for workers but no slowing in adjustment of number of employees following enactment of the labor laws. In India, no comparable reduction in labor demand occurred in small scale plants uncovered… CONTINUE READING

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