Litigation and Settlement: New Evidence from Labor Courts in Mexico

David Scott Kaplan (), Joyce Sadka () and Silva-Mendez, Jorge Luis ()
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Joyce Sadka: Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM)
Silva-Mendez, Jorge Luis: Stanford Law School

No 606, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: Using 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.

New Economics Papers: this item is included in nep-law and nep-reg
Date: 2006-09
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http://ftp.itam.mx/pub/academico/inves/sadka/06-06.pdf First version, 1996 (application/pdf)

Related works:
Working Paper: Litigation and settlement: new evidence from labor courts in Mexico (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:cie:wpaper:0606

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