Judge Bias in Labor Courts and Firm Performance

Pierre Cahuc, Stéphane Carcillo (), Bérengère Patault () and Flavien Moreau
Additional contact information
Stéphane Carcillo: Sciences Po
Bérengère Patault: CREST (ENSAE)

No 13794, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Does labor court uncertainty and judge subjectivity influence firms performance? We study the economic consequences of judge decisions by collecting information on more than 145,000 Appeal court rulings, combined with administrative firm-level records covering the whole universe of French firms. The quasi-random assignment of judges to cases reveals that judge bias has statistically significant effects on the survival, employment, and sales of small low-performing firms. However, we find that the uncertainty associated with the actual dispersion of judge bias is small and has a non-significant impact on their average outcomes.

Keywords: dismissal compensation; judge bias; firm survival; employment (search for similar items in EconPapers)
JEL-codes: J33 J63 J65 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2020-10
New Economics Papers: this item is included in nep-bec, nep-lma and nep-sbm
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Published - published in: Journal of the European Economic Association , 2024, 22 (3), 1319 - 1366

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https://docs.iza.org/dp13794.pdf (application/pdf)

Related works:
Journal Article: Judge Bias in Labor Courts and Firm Performance (2024)
Working Paper: Judge Bias in Labor Courts and Firm Performance (2022)
Working Paper: Judge Bias in Labor Courts and Firm Performance (2022)
Working Paper: Judge Bias in Labor Courts and Firm Performance (2022)
Working Paper: Judge Bias in Labor Courts and Firm Performance (2021)
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