Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215227 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12831
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Contrary to the predictions of the insider–outsider model, we show that the large majority of outsiders in developing countries support, rather than oppose, protective labour regulations. This evidence holds across countries in different regions, across different types of protective labour regulations (i.e. severance payment, minimum wages, working time), and for different categories of outsiders (i.e. unemployed workers and employees without access to legally mandated labour benefits). We revise the economic and political assumptions of the insider–outsider model, discussing their empirical relevance in a developing country context.
Subjects: 
informal
labour
segmentation
monopsony
fairness
JEL: 
J4
J8
O17
Document Type: 
Working Paper

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