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The unequal effects of liberalization: evidence from dismantling the License Raj in India

Aghion, P.; Burgess, R.; Redding, S.J.; Zilibotti, F.; (2008) The unequal effects of liberalization: evidence from dismantling the License Raj in India. American Economic Review , 98 (4) pp. 1397-1412. 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.

Type: Article
Title: The unequal effects of liberalization: evidence from dismantling the License Raj in India
DOI: 10.1257/aer.98.4.1397
Publisher version: http://dx.doi.org/10.1257/aer.98.4.1397
Language: English
Additional information: Please see http://eprints.ucl.ac.uk/17775/ for a working paper version
Keywords: Labour markets, manufacturing
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of SandHS > Dept of Economics
URI: http://discovery.ucl.ac.uk/id/eprint/17735
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