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In this age of globalization labour market institutions have been blamed for the poor economic performance of many developing countries. This book shows that the evidence on which this argument rests is weak. An interdisciplinary team of contributors utilize empirical data and theoretical evidence to offer a greater understanding of why formal labour market regulations and policies were implemented in developing countries, and how informal values and norms also influence the workings of the labour market. The contribution also analyse the economic effect that these institutions can have while shedding light on conceptual and methodological questions that have plagued the debate. This volume offers economic and social reasons for maintaining certain policies and standards, differentiating between the needs and challenges of countries with varying levels of income.
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