Judge Bias in Labor Courts and Firm Performance
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Summary:
Does labor court uncertainty and judge subjectivity influence firms’ performance? We study the economic consequences of judge decisions by collecting information on more than 145,000 Appeal court rulings, combined with administrative firm-level records covering the whole universe of French firms. The quasi-random assignment of judges to cases reveals that judge bias has statistically significant effects on the survival, employment, and sales of small low-performing firms. However, we find that the uncertainty associated with the actual dispersion of judge bias is small and has a non-significant impact on their average outcomes.
Series:
Working Paper No. 2021/031
Subject:
Economic and financial statistics Employment Labor Return on investment Wages
Frequency:
regular
English
Publication Date:
February 12, 2021
ISBN/ISSN:
9781513569383/1018-5941
Stock No:
WPIEA2021031
Pages:
72
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