The unequal effects of liberalization: Evidence from dismantling the license raj in India

Philippe Aghion; Robin Burgess; Stephen J. Redding; Fabrizio Zilibotti

doi:10.1257/aer.98.4.1397

The unequal effects of liberalization: Evidence from dismantling the license raj in India

Philippe Aghion, Robin Burgess, Stephen J. Redding, Fabrizio Zilibotti

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268 Scopus citations

Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj - a system of central controls regulating entry and production activity in this sector - vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.

Original language	English (US)
Pages (from-to)	1397-1412
Number of pages	16
Journal	American Economic Review
Volume	98
Issue number	4
DOIs	https://doi.org/10.1257/aer.98.4.1397
State	Published - Sep 2008
Externally published	Yes

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1257/aer.98.4.1397

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abstract = "We study whether the effects on registered manufacturing output of dismantling the License Raj - a system of central controls regulating entry and production activity in this sector - vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.",

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The unequal effects of liberalization: Evidence from dismantling the license raj in India

Abstract

All Science Journal Classification (ASJC) codes

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