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Teaching Labor Laws: Evidence from a Randomized Control Trial in South Africa

Author

Listed:
  • Marianne Bertrand
  • Bruno Crépon

Abstract

We assess whether imperfect knowledge of labor regulation hinders job creation at small and medium-sized firms. We partner with a labor law expert organization that provides information about labor regulation via newsletters and access to a specialized website. We randomly assign 1,800 firms to get access to this service for a 21-week period. Six months later, the average employment level at treatment firms was 12 percent higher than at control firms. The intervention decreased the perception that labor regulation is a constraint to hiring and increased optimal employment level.

Suggested Citation

  • Marianne Bertrand & Bruno Crépon, 2021. "Teaching Labor Laws: Evidence from a Randomized Control Trial in South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 125-149, October.
    • Handle: RePEc:aea:aejapp:v:13:y:2021:i:4:p:125-49
    DOI: 10.1257/app.20190497
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    Citations

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    Cited by:

    1. Eliana Carranza & David McKenzie, 2024. "Job Training and Job Search Assistance Policies in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 38(1), pages 221-244, Winter.
    2. Laura Boudreau, 2024. "Multinational Enforcement of Labor Law: Experimental Evidence on Strengthening Occupational Safety and Health Committees," Econometrica, Econometric Society, vol. 92(4), pages 1269-1308, July.
    3. Lakdawala, Leah K. & Heredia, Diana Martínez & Vera-Cossio, Diego, 2025. "The effects of expanding worker rights to children," Journal of Development Economics, Elsevier, vol. 172(C).
    4. Thomas Le Barbanchon & Johannes F. Schmieder & Andrea Weber, 2024. "Job Search, Unemployment Insurance, and Active Labor Market Policies," NBER Working Papers 32720, National Bureau of Economic Research, Inc.
    5. Bernd Beber & Tabea Lakemann & Regina Schnars & Jann Lay, 2025. "Employment Effects of Skills Trainings in Sub-Saharan Africa: A Systematic Review of Recent Randomized Controlled Trials," De Economist, Springer, vol. 173(1), pages 87-120, March.
    6. Iimi, Atsushi, 2025. "Direct and Indirect Impacts of Transport Mobility on Access to Jobs : Evidence from South Africa," Policy Research Working Paper Series 11255, The World Bank.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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