00000cmm a22000003a 4500 UP-99796217613666588 Buklod 20210421172743.0 aa r ||| u ta 210421s2018 xx d u (iLib)UPD-00523174817 DECON rda eng Ranjan, Priya author. Labor market regulations in the context of structural transformation. Metro Manila, Philippines Asian Development Bank 2018. 1 online resource (46 pages) illustrations. text rdacontent computer rdamedia online resource rdacarrier Determining what types of labor market regulations are optimal is challenging. Governments in developing countries attempt to regulate labor markets through wages, hours of work, hiring and firing restrictions, and work conditions. This paper constructs a theoretical model to study labor market regulations within the context of structural transformation. When workers are risk averse and the market for insurance against labor income risk is missing, regulations that provide insurance to workers are enhancing and raise the fraction of workers employed in the more productive formal sector. However, regulations that create barriers to the dismissal of workers may impede the transition to formal sector employment and reduce workers welfare. Empirically, the paper finds that dismissal regulations increase the share of informal employment; however, severance payments to workers do not. Economics. Health care reform Asia. Social rights Developing countries. Electronic books. Open Access Electronic Books from ADB. Click here to access https://www.adb.org/publications/labor-market-regulations-structural-transformation FI UPD DECON Electronic Resource