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Do Labor Laws Discourage Borrowers: An Empirical Note

Indian Journal of Industrial Relations

Volume 57 Issue 3

Published: 2022
Author(s) Name: Saibal Ghosh | Author(s) Affiliation: Qatar Central Bank, Doha, Qatar.
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Abstract

The paper assesses the impact of state-level employment protection laws in India on discouraged borrowers. Using data from the World Bank Enterprise Survey for 2013-14, it finds that labor laws in isolation discourage borrowing. When the complementarities between these laws are considered, the discouragement for borrowers is lower. The analysis suggests the need to ensure a holistic assessment of such laws to better understand the behavior of discourage d borrowers.

Keywords: N.A.

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