Scholarlink

<p>We develop an efficiency-wage model with firing costs, judicial delay, and judges’ pro-labor bias. When workers dismissed for personal reasons are not entitled to severance pay, a double moral hazard emerges: firms may disguise redundancies as disciplinary dismissals, and caught shirkers may litigate for wrongful termination. The impact of employment protection legislation—and its imperfect enforcement—on the efficiency wage depends on how the institutional environment shapes these strategic behaviors. In one of five possible settings, the efficiency wage decreases with pro-labor bias and increases with judicial delay. Using data on French labor courts and hourly wages, we find correlational evidence consistent with this prediction: wages correlate negatively with judicial delay and positively with pro-labor bias.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Judicial enforcement as a worker discipline device

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年10月10日

查看全文
  • Stefano Dughera,
  • Alessandro Melcarne

摘要

We develop an efficiency-wage model with firing costs, judicial delay, and judges’ pro-labor bias. When workers dismissed for personal reasons are not entitled to severance pay, a double moral hazard emerges: firms may disguise redundancies as disciplinary dismissals, and caught shirkers may litigate for wrongful termination. The impact of employment protection legislation—and its imperfect enforcement—on the efficiency wage depends on how the institutional environment shapes these strategic behaviors. In one of five possible settings, the efficiency wage decreases with pro-labor bias and increases with judicial delay. Using data on French labor courts and hourly wages, we find correlational evidence consistent with this prediction: wages correlate negatively with judicial delay and positively with pro-labor bias.