Work

Do Wrongful‐Discharge Laws Impair Firm Performance?

Year: 2009

Type: article

Abstract: We estimate the effects on firm costs and profitability of wrongful‐discharge protections adopted by U.S. state courts during 1977–99. By examining the data of approximately 18,000 commercial banks, after controlling for local state economic conditions, we find evidence of a relationship between the adoption of the implied contract exception and the increase in labor expenses. In addition, adoption of the implied contract exception is found to have a significant and negative effect on overall profitability. The study corroborates previous findings that wrongful‐discharge laws place increased costs on employers.

Source: The Journal of Law and Economics

DOI: 10.1086/596560

Authors: Robert C. Bird, John D. Knopf

Institution: University of Connecticut

Language: English

Topic: Law, Economics, and Judicial Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2160911528

FWCI: 10.48

Cites: 59

Cited by: 98

Related to: 10