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Labor Market Regulation and the Legal System

Author Info

Listed author(s):
  • Carsten Hefeker

    ()

    (University of Siegen)

  • Michael Neugart

    ()

    (Free University of Bozen/Bolzano)

Abstract

When enacting labor market regulation governments face courts that interpret and implement the legal code. We show that the incentives for governments for labor market reform increase with the uncertainty that is involved in the implementation of legal codes through courts. Given that judges have more discretion in common as opposed to civil law systems more reform activity as a response to crises should be observed in the former system. This finding is backed by evidence from a panel of OECD countries.

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/15-2009_hefeker.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 200915.

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Length: 27 pages
Date of creation: 2009
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:200915
Contact details of provider: Postal:
Universitätsstraße 25, 35037 Marburg

Phone: 06421/28-1722
Fax: 06421/28-4858
Web page: http://www.uni-marburg.de/fb02/
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Keywords: labor market regulation; labor courts; uncertainty; unemployment;

Other versions of this item:

Find related papers by JEL classification:
  • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
  • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

This paper has been announced in the following NEP Reports:

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Cited by:

  1. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
  2. Christian Bjørnskov & Niklas Potrafke, 2012. "Political Ideology and Economic Freedom Across Canadian Provinces," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(2), pages 143-166.
  3. repec:dau:papers:123456789/6913 is not listed on IDEAS
  4. Belkhir, Mohamed & Ben-Nasr, Hamdi & Boubaker, Sabri, 2016. "Labor protection and corporate Debt maturity: International evidence," International Review of Financial Analysis, Elsevier, vol. 45(C), pages 134-149.

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