TY  - RPRT
        AU  - Fraisse, Henri
AU  - Kramarz, Francis
AU  - Prost, Corinne
        TI  - Labor Disputes and Labor Flows
        PY  - 2011/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5677
        UR  - https://www.iza.org/index.php/publications/dp5677
        AB  - About one in four workers challenges her dismissal in front of a labor court in France. Using a data set of individual labor disputes brought to French courts over the years 1996 to 2003, we examine the impact of labor court activity on labor market flows. First, we present a simple theoretical model showing the links between judicial costs and judicial case outcomes. Second, we exploit our model as well as the French institutional setting to generate instruments for these endogenous outcomes. In particular, we use shocks in the supply of lawyers who resettle close to their university of origin. Using these instruments, we show that labor court decisions have a causal effect on labor flows. More trials and more cases won by the workers cause more job destructions. More settlements, higher filing rates, and a larger fraction of workers represented by a lawyer dampen job destructions. Various robustness checks confirm these findings.
        KW  - labor judges
KW  - labor flows
KW  - employment protection legislation
KW  - unfair dismissal
KW  - France
        ER  -