Ravi Kanbur, Lucas Ronconi, 30 March 2016

Current de jure measures of labour regulation stringency point to negative consequences of labour laws. This column presents new evidence on cross-country measurements of enforcement of labour laws from almost every country in the world. The authors argue that the consequences of labour enforcement cannot be credibly assessed using de jure measures which ignore the chance that enforcement is lower in places with stricter laws. On average, there is a negative correlation between the stringency of labour regulation and the intensity of its enforcement.

Ross Levine, Chen Lin, 02 July 2015

Labour market regulations have important implications for both the incidence of cross-border acquisitions, and the outcomes for acquiring firms. This column explores how variations in labour regulations between countries affect cross-border acquisitions and subsequent firm performance. For a sample of 50 countries, firms are found to enjoy larger returns when they acquire a target in a country with weaker labour regulations than the acquirer’s home country.