The index aims to provide a measure of the extent to which a given aspect of employment or labour relations is regulated (from the point of view of the employer) or protected (from the point of view of the worker).
A Digit Data Commentary outlines how the dataset is constructed and some emerging findings. Further analysis using the dataset will provide insight into the long-term economic and social impacts of labour regulation.
The Index is becoming widely used by the research community, governments, and international agencies, to study the interaction of legal and institutional change with wider economic, political and social trends, including the rise of the platform economy.
The CBR-LRI is constructed using a version of ‘leximetric’ methodology which provides a basis for the quantitative analysis of legal rules (Lele and Siems, 2007; Adams and Deakin, 2015). The process is detailed in the Codebook that accompanies the dataset.
Analysis using the updated dataset is ongoing however two key trends emerge in the 2023 update:
First, dismissal laws in many countries strengthened in response to the Covid-19 emergency, as governments sought to stabilise employment during the pandemic.
Second, in many countries platform work is increasingly being assimilated to the rules governing regular employment.
Analysis based on the dataset
Earlier versions of the CBR-LRI have been used to test some of the key claims made in debates over the economic and social effects of labour laws. Emerging findings include:
Worker-protective labour laws tend to increase the labour share of national income, (the proportion of income going to wages and salaries) (Adams et al., 2019).