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- Title
Judge Bias in Labor Courts and Firm Performance.
- Authors
Cahuc, Pierre; Carcillo, Stéphane; Patault, Bérengère; Moreau, Flavien
- Abstract
This paper documents the existence of judge-specific differences on granting compensation for wrongful dismissal and shows that their consequences are different for small low-performing firms than for other firms. Pro-worker judge bias reduces job creation for all firms, increases the destruction of permanent jobs in small and low-performing firms but reduces it in large high-performing firms. Pro-worker bias reduces employment and survival for small and low-performing firms but has no significant effects on these outcomes for the other firms. The probability that permanent incumbent workers keep their job in firms judged by a pro-worker judge increases in large and high-performing firms, while it decreases in small, poorly performing firms.
- Subjects
LABOR courts; JUDGES; ORGANIZATIONAL performance; SMALL business; SEVERANCE pay; JOB creation; DISMISSAL of executives
- Publication
Journal of the European Economic Association, 2024, Vol 22, Issue 3, p1319
- ISSN
1542-4766
- Publication type
Article
- DOI
10.1093/jeea/jvad046