Labor Market and Access to Justice

Romain Espinosa (), Claudine Desrieux () and Marc Ferracci ()
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Romain Espinosa: CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas
Claudine Desrieux: CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas
Marc Ferracci: CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po

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Abstract: In 2008, the French government enacted a reform that reduced the number of labor courts by one quarter. This led to significant changes in access to labor courts for many workers and employers who had to travel further to proceed with conflict litigation. We use this reform to evaluate how access to labor courts affects the labor market. Our empirical approach mainly relies on regression-adjusted conditional differences-indifferences estimations. We find that cities that experienced an increase in the distance to their associated labor court suffered from a lower growth rate of job creation (-4 percentage points), job destruction (-4.6 pp) and firm creation (-6.3 pp) between 2007 and 2012 compared to unaffected cities. We find opposite but insignificant effects for cities that experienced a fall in the distance to the labor court. These results emphasize the central role of labor courts for the good functioning of the labor market.

Keywords: firm creation; job destruction; Job creation; judicial reform; labor courts (search for similar items in EconPapers)
Date: 2018-06
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01634209
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Published in International Review of Law and Economics, 2018, 54, pp.1-16. ⟨10.1016/j.irle.2017.09.008⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:halshs-01634209

DOI: 10.1016/j.irle.2017.09.008

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