A key prediction of dynamic labor demand models is that firing restrictions attenuate firms' employment responses to economic fluctuations. We provide the first direct test of this prediction using data from India. We exploit the fact that rainfall fluctuations, through their effects on agricultural productivity, generate variation in local demand within districts over time. Consistent with the...

The role of government expenditure is analyzed in the context of growing economy with endogenous labor supply and with investment adjustment costs. Assuming the dynasty model of representative consumer’s utility maximization i.e., the present value of over time felicity function maximization under the law of motion capital where felicity function depends consumption, leisure and government expe...

Current U.S. law on drug testing is reviewed in this article. The widespread practices of drug abuse and drug testing in the United States are reviewed in the initial section. Legal questions are posed concerning constitutional rights and the rights organized labor has won in the courts during the last century. Federal appellate case law, federal and state statutory law, and military law on dru...

This study investigates the effects of employment protection on wages. The implementation of employment protection legislation increases employers’ firing costs and reduces labor turnover, and thus results in lower wages. Our empirical results show that the implementation of Taiwan’s Labor Standards Law leads to a reduction in wages, the effects of which varies with the stringency of the law’s ...