bricslawjournalBRICS Law JournalЮридический журнал БРИКС2409-90582412-2343Publishing House V.Ема10.21684/2412-2343-2023-10-3-19-48bricslawjournal-872Research ArticleARTICLEDoes the Strength of Labour Regulation Affect Self-Employment? Evidence from the BRICS CountriesZhangW.

Assistant Professor, Department of Labour and Social Security, School of Government, Nanjing University Shengda Building

Xianlin Avenue 163, 210023, Nanjing 

 

weidong.zhang@nju.edu.cnNanjing UniversityChina2023111020231031948Copyright © Zhang W., 20232023Zhang W.Zhang W.Данная работа распространяется под лицензией Creative Commons Attribution 4.0.This work is licensed under a Creative Commons Attribution 4.0 License.https://www.bricslawjournal.com/jour/article/view/872

This article examines the relationship between labour regulation and self-employment in the BRICS countries by using data from the Labour Regulation Index developed at the Centre for Business Research at Cambridge University (CBR-LRI) and the ILOSTAT collected and developed by the ILO Department of Statistics from 1992 to 2013. The research is conducted in two strands. In the first strand, the study examines the relationship between labour regulation and self-employment at the overall level. The empirical results obtained suggest that a negative relationship exists in Brazil, China, and South Africa, while a positive relationship exists in Russia and South Africa. This implies that, as the relative strength of labour regulation increases in Brazil, China, and South Africa, fewer workers are likely to be engaged in self-employment. In Russia and India, however, the result implies that more workers are likely to be engaged in self-employment with relatively stronger labour regulation. In the second strand, the study provides a breakdown of labour regulation and self-employment into measures of their constituent components, including the regulation on different forms of employment, working time, dismissal of employees, employee representation, and industrial actions and employers’ and vulnerable employment. The findings suggest that not all five aspects of labour regulation have a significant effect on employers’ and vulnerable employment in the BRICS countries except for Russia. The most influential or the only aspect that has a significant effect on employers’ employment is the regulation on different forms of employment in Brazil and South Africa (negative) and Russia (positive), and the regulation on industrial actions in India (positive) and China (negative), while the most influential or the only aspect affecting vulnerable employment is the regulation on dismissal in Brazil (negatively), the regulation on employee representation in Russia (positively), the regulation on different forms of employment in India (positively), the regulation on industrial actions in China (negatively), and the regulation on working time in South Africa (positively).

labour regulationself-employmentBRICS countriesCBR-LRIILOSTATempirical researchReferencesAcs Z.J. et al. Why Does the Self-Employment Rate Vary Across Countries and Over Time?, Centre for Economic Policy Research Discussion Paper No. 871 (1994).Acs Z.J. et al. Why Does the Self-Employment Rate Vary Across Countries and Over Time?, Centre for Economic Policy Research Discussion Paper No. 871 (1994).Adams Z. et al. CBR Labour Regulation Index: Dataset of 117 Countries (2016).Adams Z. et al. CBR Labour Regulation Index: Dataset of 117 Countries (2016).Adams Z. et al. The Economic Significance of Laws Relating to Employment Protection and Different Forms of Employment: Analysis of a Panel of 117 Countries, 1990−2013, 158(1) International Labour Review 1 (2019). https://doi.org/10.1111/ilr.12128Adams Z. et al. The Economic Significance of Laws Relating to Employment Protection and Different Forms of Employment: Analysis of a Panel of 117 Countries, 1990−2013, 158(1) International Labour Review 1 (2019). https://doi.org/10.1111/ilr.12128Amorim e Souza R. Labour Law in Brazil (2004). Armour J. et al. CBR Leximetric Datasets (2016). https://doi.org/10.17863/CAM.506Amorim e Souza R. Labour Law in Brazil (2004). Armour J. et al. CBR Leximetric Datasets (2016). https://doi.org/10.17863/CAM.506Blanchflower D.G. Self-Employment in OECD Countries, 7(5) Labour Economics 471 (2000). https://doi.org/10.1016/s0927-5371(00)00011-7Blanchflower D.G. Self-Employment in OECD Countries, 7(5) Labour Economics 471 (2000). https://doi.org/10.1016/s0927-5371(00)00011-7Bögenhold D. & Staber U. The Decline and Rise of Self-Employment, 5(2) Work, Employment and Society 223 (1991). https://doi.org/10.1177/0950017091005002005Bögenhold D. & Staber U. The Decline and Rise of Self-Employment, 5(2) Work, Employment and Society 223 (1991). https://doi.org/10.1177/0950017091005002005Botero J. et al. The Regulation of Labour, 119(4) Quarterly Journal of Economics 1339 (2004).Botero J. et al. The Regulation of Labour, 119(4) Quarterly Journal of Economics 1339 (2004).Burchell B. et al. Self-Employment Programmes for Young People: A Review of the Context, Policies and Evidence, ILO Working Papers (2015).Burchell B. et al. Self-Employment Programmes for Young People: A Review of the Context, Policies and Evidence, ILO Working Papers (2015).Chatterjee S. & Hadi A.S. Regression Analysis by Example (2015). https://doi.org/10.1002/0470055464Chatterjee S. & Hadi A.S. Regression Analysis by Example (2015). https://doi.org/10.1002/0470055464Cooney S. et al. Building BRICS of Success?, in Finkin M.W. & Mundlak G. (eds.), Comparative Labour Law (2015). https://doi.org/10.4337/9781781000137.00022Cooney S. et al. Building BRICS of Success?, in Finkin M.W. & Mundlak G. (eds.), Comparative Labour Law (2015). https://doi.org/10.4337/9781781000137.00022Davies A.C.L. Perspectives on Labour Law (2009). https://doi.org/10.1017/cbo9780511626968Davies A.C.L. Perspectives on Labour Law (2009). https://doi.org/10.1017/cbo9780511626968Deakin S. et al. Labour Law and Inclusive Development: The Economic Effects of Industrial Relations Laws in Middle-Income Countries, in Schmiegelow M. & Schmiegelow H. (eds.), Institutional Competition Between Common Law and Civil Law 185 (2014). https://doi.org/10.1007/978-3-642-54660-0_6Deakin S. et al. Labour Law and Inclusive Development: The Economic Effects of Industrial Relations Laws in Middle-Income Countries, in Schmiegelow M. & Schmiegelow H. (eds.), Institutional Competition Between Common Law and Civil Law 185 (2014). https://doi.org/10.1007/978-3-642-54660-0_6Gorbacheva Z.A. Labour Law in Russia (2019).Gorbacheva Z.A. Labour Law in Russia (2019).Grubb D. & Wells W. Employment Regulation and Patterns of Work in EC Countries, OECD Economic Studies 7 (1993).Grubb D. & Wells W. Employment Regulation and Patterns of Work in EC Countries, OECD Economic Studies 7 (1993).Johri C.K. Labour Law in India (2014).Johri C.K. Labour Law in India (2014).Lebedev V. The Development of Employment Legislation in the Post-Soviet Period, in Lebedev V. & Radevic E. (eds.) Labour Law in Russia: Recent Developments and New Challenges (2014).Lebedev V. The Development of Employment Legislation in the Post-Soviet Period, in Lebedev V. & Radevic E. (eds.) Labour Law in Russia: Recent Developments and New Challenges (2014).Lee S. et al. The World Bank’s “Employing Workers” Index: Findings and Critiques – A Review of Recent Evidence, 147(4) International Labour Review 416 (2008). https://doi.org/10.1111/j.1564-913x.2008.00043.xLee S. et al. The World Bank’s “Employing Workers” Index: Findings and Critiques – A Review of Recent Evidence, 147(4) International Labour Review 416 (2008). https://doi.org/10.1111/j.1564-913x.2008.00043.xLushnikov A. The Development of Russian Labour Law in the 21 st Century: A Comparative Sketch of Regularities and Trends, in Lebedev V. & Radevic E. (eds.), Labour Law in Russia: Recent Developments and New Challenges (2014).Lushnikov A. The Development of Russian Labour Law in the 21 st Century: A Comparative Sketch of Regularities and Trends, in Lebedev V. & Radevic E. (eds.), Labour Law in Russia: Recent Developments and New Challenges (2014).Parker S.C. & Robson M.T. Explaining International Variations in Entrepreneurship: Evidence from a Panel of OECD Countries, 44 Entrepreneurship Research Series (2003).Parker S.C. & Robson M.T. Explaining International Variations in Entrepreneurship: Evidence from a Panel of OECD Countries, 44 Entrepreneurship Research Series (2003).Pietrobelli C. et al. An Empirical Study of the Determinants of Self-Employment in Developing Countries, 16(6) Journal of International Development 803 (2004). https://doi.org/10.1002/jid.1117Pietrobelli C. et al. An Empirical Study of the Determinants of Self-Employment in Developing Countries, 16(6) Journal of International Development 803 (2004). https://doi.org/10.1002/jid.1117Robson M.T. Does Stricter Employment Protection Legislation Promote Self-Employment?, 21(3) Small Business Economics 309 (2003).Robson M.T. Does Stricter Employment Protection Legislation Promote Self-Employment?, 21(3) Small Business Economics 309 (2003).Román C. et al. Dependent Self-Employment as a Way to Evade Employment Protection Legislation, 37(3) Small Business Economics 363 (2011). https://doi.org/10.1007/s11187-009-9241-3Román C. et al. Dependent Self-Employment as a Way to Evade Employment Protection Legislation, 37(3) Small Business Economics 363 (2011). https://doi.org/10.1007/s11187-009-9241-3Saini D.S. Labour Law in India: Structure and Working, in Budhwar P.S. & Bhatnagar J. (eds.), The Changing Face of People Management in India (2008). https://doi.org/10.4324/9780203884867-3Saini D.S. Labour Law in India: Structure and Working, in Budhwar P.S. & Bhatnagar J. (eds.), The Changing Face of People Management in India (2008). https://doi.org/10.4324/9780203884867-3Torrini R. Cross-Country Differences in Self-Employment Rates: The Role of Institutions, 12(5) Labour Economics 661 (2005). https://doi.org/10.1016/j.labeco.2004.02.010Torrini R. Cross-Country Differences in Self-Employment Rates: The Role of Institutions, 12(5) Labour Economics 661 (2005). https://doi.org/10.1016/j.labeco.2004.02.010

The authors declare that there are no conflicts of interest present.