Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227321
Authors: 
Cahuc, Pierre
Carcillo, Stéphane
Patault, Bérengère
Moreau, Flavien
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13794
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.
Subjects: 
firm survival
judge bias
dismissal compensation
employment
JEL: 
J33
J63
J65
Document Type: 
Working Paper

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