The Labor Effects of Judicial Bias in Bankruptcy
Aloisio Araujo, Rafael Ferreira, Spyridon Lagaras, Flavio Moraes, Jacopo Ponticelli, Margarita Tsoutsoura
Journal of Financial Economics,
Nr. 2,
2023
Abstract
We study the effect of judicial bias favoring firm continuation in bankruptcy on the labor market outcomes of employees by exploiting the random assignment of cases across courts in the State of São Paulo in Brazil. Employees of firms assigned to courts that favor firm continuation are more likely to stay with their employer, but they earn, on average, lower wages three to five years after bankruptcy. We discuss several potential mechanisms that can rationalize this result, and provide evidence that imperfect information about outside options in the local labor market and adjustment costs associated with job change play an important role.
Artikel Lesen
Startseite
IWH-Insolvenztrend für März: Zahl der Firmenpleiten erreicht neuen Rekord Deutlich schneller als die amtliche Statistik...
Zur Seite
People
People Job Market Candidates Doctoral...
Zur Seite
People
People Job Market Candidates Doctoral...
Zur Seite
IWH European Real Estate Index
IWH European Real Estate Index Die IWH European Real Estate Database ist ein neuer...
Zur Seite
IWH-FDI-Mikrodatenbank
IWH-FDI-Mikrodatenbank Die IWH-FDI-Mikrodatenbank (FDI = Foreign Direct Investment)...
Zur Seite
Evidenzbasierte Politikberatung (IWH-CEP)
Zentrum für evidenzbasierte Politikberatung (IWH-CEP) ...
Zur Seite
Arbeitspapiere
Macroeconomic Effects from Sovereign Risk vs. Knightian Uncertainty ...
Zur Seite