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Who demands labour (de)regulation in the developing world? Insider–outsider theory revisited

Author

Listed:
  • Kanbur, Ravi
  • Ronconi, Lucas
  • López-Cariboni, Santiago
Abstract
Contrary to the predictions of the insider–outsider model, we show that the large majority of outsiders in developing countries support, rather than oppose, protective labour regulations. This evidence holds across countries in different regions, across different types of protective labour regulations (i.e. severance payment, minimum wages, working time), and for different categories of outsiders (i.e. unemployed workers and employees without access to legally mandated labour benefits). We revise the economic and political assumptions of the insider–outsider model, discussing their empirical relevance in a developing country context.

Suggested Citation

  • Kanbur, Ravi & Ronconi, Lucas & López-Cariboni, Santiago, 2020. "Who demands labour (de)regulation in the developing world? Insider–outsider theory revisited," CEPR Discussion Papers 14277, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14277
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    References listed on IDEAS

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    More about this item

    Keywords

    Informal; Labour; Segmentation; Monopsony; Fairness;
    All these keywords.

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J8 - Labor and Demographic Economics - - Labor Standards
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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