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American Economic Review: Vol. 98 No. 4 (September 2008)
AER Volume. 98, Issue 4 | 
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The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India
Article Citation
Aghion, Philippe,
Robin Burgess,
Stephen J. Redding, and
Fabrizio Zilibotti. 2008. "The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India."
American Economic Review,
98(4): 1397-1412.
DOI: 10.1257/aer.98.4.1397
DOI: 10.1257/aer.98.4.1397
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. (JEL J50, L52,L60, O14, O15, O25)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (3.85 MB) | Link to Appendix (204.95 KB)
Authors
Aghion, Philippe (Harvard U)
Burgess, Robin (London School of Economics)
Redding, Stephen J. (London School of Economics)
Zilibotti, Fabrizio (Institute for Empirical Research in Economics, U Zurich)
Burgess, Robin (London School of Economics)
Redding, Stephen J. (London School of Economics)
Zilibotti, Fabrizio (Institute for Empirical Research in Economics, U Zurich)
JEL Classifications
J50: Labor-Management Relations, Trade Unions, and Collective Bargaining: General
L52: Industrial Policy; Sectoral Planning Methods
L60: Industry Studies: Manufacturing: General
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O25: Industrial Policy
L52: Industrial Policy; Sectoral Planning Methods
L60: Industry Studies: Manufacturing: General
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O25: Industrial Policy
