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Do Labor Laws Discourage Borrowers? An Empirical Note


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1 Qatar Central Bank, Doha, Qatar
     

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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.
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  • Do Labor Laws Discourage Borrowers? An Empirical Note

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Authors

Saibal Ghosh
Qatar Central Bank, Doha, Qatar

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.

References