Litigation and Settlement: New Evidence from Labor Courts in Mexico
AbstractUsing a newly assembled data set on procedures filed in Mexican labor tribunals, we study the determinants of final awards to workers. On average, workers recover less than 30% of their claim. Our strongest result is that workers receive higher percentages of their claims in settlements than in trial judgments. We also find that cases with multiple claimants against a single firm are less likely to be settled, which partially explains why workers involved in these procedures receive lower percentages of their claims. Finally, we find evidence that a worker who exaggerates her claim is less likely to settle.
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Bibliographic InfoPaper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 0606.
Length: 33 pages
Date of creation: Sep 2006
Date of revision:
Other versions of this item:
- Kaplan, David S. & Sadka, Joyce & Silva-Mendez, Jorge Luis, 2007. "Litigation and settlement : new evidence from labor courts in Mexico," Policy Research Working Paper Series 4434, The World Bank.
- NEP-ALL-2006-10-28 (All new papers)
- NEP-LAW-2006-10-28 (Law & Economics)
- NEP-REG-2006-10-28 (Regulation)
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