In a previous post I discussed how the current global financial crisis seems to have forced policy makers in India to take another look at existing labor laws in the country. The Economic Survey (2008-09) of India released by the Ministry of Finance in early July this year clearly noted the imperative need to facilitate the growth of labor intensive industries, "especially by reviewing labor laws and labor market regulations."
Few would contest that the internet revolution has saved us a lot of time keeping in touch with others and conducting searches. For firms, time saved is labor saved and this is particularly attractive in countries that have stricter labor laws. What I’m suggesting here is that stricter labor laws may encourage firms to adopt modern labor-saving technologies such as the internet and computers. In theory this could magnify the adverse effect of stricter labor laws on employment and wages documented in the literature. So what does the data tell us?
Editor's Note: Peter Kusek is an Investment Policy Officer with the Investment Climate Advisory Services of the World Bank Group.
Microfinance has been getting its fair share of attention lately.
How do you get a small entrepreneur in northern Sicily to navigate through the maze of government bureaucracy, tap into the creative juices of an architect or a musician and submit a successful funding proposal for a government-funded development project?
The Enterprise Surveys team has introduced a new product called Country Notes. This series of notes provide a customized snapshot of a country’s business environment relative to other economies surveyed in the region. While the survey fieldwork itself is a complex task, the notes themselves provide succinct analyses and policy recommendations based on the collected data.
Might access to credit have anything to do with support for employment protection legislation (EPL)? Felipe Balmaceda and Ronald Fischer propose a connection. Workers in firms with easy access to credit EPL. Workers in firms with shaky access to credit oppose EPL.
Internet usage has been increasing at a rapid rate over the last decade or so. For example, according to World Development Indicators (WDI, World Bank), internet subscribers equaled 13% of the total population in low and middle income countries in 2007. This is up from a mere 1.5% in 2000, implying on average an increase of over 109% per annum in the proportion of internet subscribers.