Lucas Ronconi, Ravi Kanbur, Santiago López-Cariboni, 24 April 2020

A standard argument in labour economics is that labour regulations benefit the ‘insiders’ who are covered by them, but hurt the ‘outsiders’ who are not. This column provides evidence on outsiders’ preferences for labour regulations in developing countries. Contrary to the predictions of the insider-outsider theory, unemployed and informal workers are found to be in favour of increasing labour regulations across all countries studied.

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