TY  - JOUR
AU  - Aghion,Philippe
AU  - Burgess,Robin
AU  - Redding,Stephen
AU  - Zilibotti,Fabrizio
TI  - The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12031
PY  - 2006
Y2  - February 2006
UR  - http://www.nber.org/papers/w12031
L1  - http://www.nber.org/papers/w12031.pdf
N1  - Author contact info:
Philippe Aghion
Department of Economics
Harvard University
1805 Cambridge St
Cambridge, MA 02138
Tel: 617/495-6675
Fax: 617/495-4341
E-Mail: paghion@fas.harvard.edu

Robin Burgess
R524, Department of Economics and STICERD
LSE Research Laboratory
London School of Economics
Houghton Street
London WC2A 2AE  UNITED KINGDOM
Tel: 020-7955-6676
Fax: 020-79556951
E-Mail: r.burgess@lse.ac.uk

Stephen J. Redding
Department of Economics
and Woodrow Wilson School
Princeton University
Fisher Hall
Princeton, NJ 08544
Tel: 609/258-4016
Fax: 609/258-6419
E-Mail: reddings@princeton.edu

Fabrizio Zilibotti
IIES Stockholm University
Hus A, Trappa 8
SE 10691, Stockholm
Sweden
Tel: +46 8 162225
E-Mail: zilibott@iew.uzh.ch
AB  - We study the effects of the progressive elimination of the system of industrial regulations on entry and production, known as the "license raj," on registered manufacturing output, employment, entry and investment across Indian states with different labor market regulations. The effects are found to be unequal depending on the institutional environment in which industries are embedded. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.
ER  -