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This
paper provides a survey of the empirical
evidence on the relationship between labour
market institutions and economic outcomes.
Survey of major cross-country empirical
constructs that examine linkages between
labour regulations and different aspects
of economic performance such as employment,
growth, etc., shows that the empirical
basis for the advocacy of blanket labour
market flexibility is rather weak. The
paper also highlights some key empirical
findings from the organised manufacturing
sector in India and postulates some capital
lessons and minor messages that emerge
from such an exercise.
August
7, 2012.
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