Judicial decisions concerning industrial action have strengthened the right to strike and made lockouts virtually impossible. Employers respond to such a shift in the power on the labour market with relocations and power on the goods market. In addition the trade unions are threatened by...

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...