Regulation and Noncompliance : Magnitudes and Patterns for India's Factories Act

Chatterjee, Urmila ; Kanbur, Ravi

World Bank, Washington, DC

关键词: CO-OPERATIVES;    ECONOMIC THEORY;    ECONOMICS;    EMPLOYMENT;    EMPLOYMENT SHARE;   

DOI  :  10.1596/1813-9450-6755
RP-ID  :  WPS6755

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Noncompliance with regulations byenterprises is said to be rife in developing countries. Yetthere is limited systematic evidence of the magnitude ofnoncompliance at the enterprise level. Making innovative useof two complementary data sources, this paper quantifiesnoncompliance for India's Factories Act without thequestion of illegality ever being raised directly withenterprises. The paper finds that more than twice as manyfirms are not complying as are complying. Further, thenumber of noncompliant firms is much larger than the numberof firms adjusting out of the regulation. Thus noncompliancewith the Factories Act is a key feature of the "missingmiddle" in India. The paper explores the main trendsand patterns of noncompliance and highlights a number of keyissues for further analytical and policy research.