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

By Philippe Aghion, Robin Burgess, Stephen Redding and Fabrizio Zilibotti


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

Topics: HC Economic History and Conditions, HD Industries. Land use. Labor, HD28 Management. Industrial Management
Publisher: American Economic Association
Year: 2008
DOI identifier: 10.1257/aer.98.4.1397
OAI identifier:
Provided by: LSE Research Online
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