Regulation and Noncompliance : Magnitudes and Patterns for India's Factories Act
Noncompliance with regulations by enterprises is said to be rife in developing countries. Yet there is limited systematic evidence of the magnitude of noncompliance at the enterprise level. Making innovative use of two complementary data sources, t...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/01/18839283/regulation-noncompliance-magnitudes-patterns-indias-factories-act http://hdl.handle.net/10986/16823 |
| Summary: | Noncompliance with regulations by
enterprises is said to be rife in developing countries. Yet
there is limited systematic evidence of the magnitude of
noncompliance at the enterprise level. Making innovative use
of two complementary data sources, this paper quantifies
noncompliance for India's Factories Act without the
question of illegality ever being raised directly with
enterprises. The paper finds that more than twice as many
firms are not complying as are complying. Further, the
number of noncompliant firms is much larger than the number
of firms adjusting out of the regulation. Thus noncompliance
with the Factories Act is a key feature of the "missing
middle" in India. The paper explores the main trends
and patterns of noncompliance and highlights a number of key
issues for further analytical and policy research. |
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