Labor Market Regulation and the Legal System

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 hav...

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Foilsithe in:MAGKS - Joint Discussion Paper Series in Economics (Band 15-2009)
Príomhchruthaitheoirí: Hefeker, Carsten, Neugart, Michael
Formáid: Arbeit
Teanga:Béarla
Foilsithe / Cruthaithe: Philipps-Universität Marburg 2009
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Achoimre: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 �nding is backed by evidence from a panel of OECD countries.
ISSN:1867-3678
DOI:10.17192/es2023.0229