Do Rigid Labor Laws Mean Higher Unemployment in Developing Countries?

Lau, Terence
August 2009
Academy of Management Perspectives;Aug2009, Vol. 23 Issue 3, p95
Academic Journal
The article focuses on a research study by Simeon Djankov and Rita Ramalho, both from the World Bank, about the impact of labor laws and legislation in developing countries. Particular attention is given to studies conducted in the span of five years that assessed the connection between labor law rigidity and unemployment. The researchers examined the belief that if laws make it easier and more cost effective to hire and fire employees in developing countries, then the unemployment rate should be lower.


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