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

Marianne Bertrand and Bruno Crépon ()
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Bruno Crépon: CREST

No 13513, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: labor demand; labor laws (search for similar items in EconPapers)
JEL-codes: J23 J63 J64 J68 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-07
New Economics Papers: this item is included in nep-lab
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Published - published in: American Economic Review, 2021, 13 (4), 124 - 149

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Journal Article: Teaching Labor Laws: Evidence from a Randomized Control Trial in South Africa (2021)
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