We study both the various consequences and the incentives of outsourcing. We argue thatthe wage elasticity of labour demand is increasing as a function of the share of outsourcing,which is importantly a result consistent with existing empirical research...

Using manufacturing data for India, this paper studies the economic effects of legal amendments on two types of labor laws: employment protection and labor dispute resolution legislation. We find that laws that increase employment protection or the cost of labor disputes substantially reduce...