We identify the effects of labor reforms, which entered into the force in June 2006 in
Georgia, on female and ethnic minority workers. We use “difference in difference” estimation,
useful to identify the difference in market outcomes for pre and post reform periods. The data come
from the Statistics Department of Georgia: Household Quarterly Survey. The years 2004-2007 were
chosen to compare the labor market outcomes for these two groups, two years before and after the
labor code reform. The regression results show that there is no effect on the economic
discrimination against these two groups in private sector. The absence of the negative impact of the
reform contradicts with the idea that more flexible regulations might induce discrimination.