Ann. E. Harrison

University of Berkeley
Ann. E. Harrison

Research Associate at the National Bureau of Economic Research (NBER), Research Fellow at the Center for Economic and Policy Research (CEPR), and an affiliate of the International Growth Centre (IGC) in London. She has also taught at the Columbia Business School, University of California, Berkeley, the Kennedy School of Government at Harvard University, and the University of Paris. She currently serves as the United States Representative on the United Nation’s Committee on Development Policy. Before joining the Wharton School, Professor Harrison spent two years in Washington D.C. as the Director of Development Policy at the World Bank. She is the author of dozens of articles and several books, including Globalization and Poverty (2007), and The Factory-Free Economy (2017).

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Ann. E. Harrison

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How did de-reservation of small-scale industry affect employment?

To protect small, labour-intensive manufacturing enterprises and boost employment, the Indian government reserved certain products for exclusive production by such enterprises. This policy was gradually phased out during 1997-2015. This column finds that dismantling of the reservation, in fact, led to increases in overall employment, driven by entrants into the de-reserved product space and incumbents that were previously constrained by the policy’s size limits.

05 December 2016
Macroeconomics
Macroeconomics
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