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

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Listed:
  • Bertrand, Marianne

    (University of Chicago)

  • Crépon, Bruno

    (CREST)

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 that provides information about labor regulation via newsletters and access to a specialized website. We randomly assign 1800 firms to get access to this service for a 21-week period. Six months later, the average employment level at treatment firms was 12% 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

  • Bertrand, Marianne & Crépon, Bruno, 2020. "Teaching Labor Laws: Evidence From a Randomized Control Trial in South Africa," IZA Discussion Papers 13513, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13513
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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.

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    More about this item

    Keywords

    labor demand; labor laws;

    JEL classification:

    • 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
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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