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

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

Research output: Contribution to journalArticlepeer-review

262 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 languageEnglish (US)
Pages (from-to)1397-1412
Number of pages16
JournalAmerican Economic Review
Volume98
Issue number4
DOIs
StatePublished - Sep 2008
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'The unequal effects of liberalization: Evidence from dismantling the license raj in India'. Together they form a unique fingerprint.

Cite this