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

Marianne Bertrand and Bruno Crépon

American Economic Journal: Applied Economics, 2021, vol. 13, issue 4, 125-49

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.

JEL-codes: D22 D83 J23 J63 K31 L25 O15 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Working Paper: Teaching Labor Laws: Evidence From a Randomized Control Trial in South Africa (2020)
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DOI: 10.1257/app.20190497

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