nep-law New Economics Papers
on Law and Economics
Issue of 2021‒04‒05
seven papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. Judge Bias in Labor Courts and Firm Performance By Pierre Cahuc; Stéphane Carcillo; Berengere Patault; Flavien Moreau
  2. How laws affect the perception of norms: empirical evidence from the lockdown By Roberto Galbiati; Emeric Henry; Nicolas Jacquemet; Max Lobeck
  4. Reforming Non-Notifiable Mergers in Ireland: the Kantar Media/Newsaccess Transaction By Gorecki, Paul
  5. Better enforcement is essential, but may be inadequate: Findings of a survey on the factors affecting payment of speeding fines in Cape Town, South Africa By Jason Bantjes; Sophia du Plessis; Ada Jansen; Krige Siebrits
  6. Tobacco sales to underage buyers in France: findings from a mystery shopping study By Christian Ben Lakhdar; Xavier Elharrar; K. Gallopel-Morvan; F.-C. Wolff
  7. Unequal Jury Representation and Its Consequences By Shamena Anwar; Patrick Bayer; Randi Hjalmarsson

  1. By: Pierre Cahuc; Stéphane Carcillo; Berengere Patault; Flavien Moreau
    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.
    Keywords: Employment;Wages;Economic and financial statistics;Labor;Return on investment;Dismissal compensation,judge bias,firm survival,WP,pro-worker bias,appeal court rulings database,firm's employment,judge level
    Date: 2021–02–12
  2. By: Roberto Galbiati (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Emeric Henry (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Nicolas Jacquemet (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Max Lobeck (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Laws not only affect behavior due to changes in material payoffs, but they may also change the perception individuals have of societal norms, either by shifting them directly or by providing information on these norms. Using detailed daily survey data and exploiting the introduction of lockdown measures in the UK in the context of the COVID-19 health crisis, we provide causal evidence that the law drastically changed the perception of the norms regarding social distancing behaviors. We show this effect of laws on perceived norms is mostly driven by an informational channel.
    Date: 2020–08–09
  3. By: Anatoliy Kostruba (Vasyl Stefanyk Precarpathian National University)
    Abstract: Professional sports, from the standpoint of sociology, is a type of subculture. This is a system of relations based on the factor of social self-regulation. In view of the above, social relations in the field of sports are also characterized by the autonomy of their legal regulation. Such social ecosystem forms an autonomous legal order, which is in a degree of relative dependence on state regulation, while remaining an integral segment of the legal system of society as a whole. The sports order is formed among other factors by a huge network of various institutions, organizations and regulators, cooperation and participation of public and private entities at different levels, and has its own judicial system, which is based on the International Court of Arbitration for Sport in Lausanne. It is the autonomy of the sports legal order that presupposes the existence of a system of jurisdictional bodies whose activities are aimed at considering disputes in the relevant sphere of relations. At the same time, despite the integrity of the system of sports law and order in relation to public law and order, the internal organizational unity, in particular, of the process of resolving disputes in sports relations is unbalanced. The above indicates the need for clearer legal regulation of activities in the field of professional sports, in particular in terms of issues raised. At the level of national legislation of Ukraine, it is necessary to define statutorily self-regulatory organizations, to give the appropriate status to national federations and consolidate the structure of participants in relations in the field of professional sports around them. This will resolve the issue of local regulation of relations in the field of professional sports, including in the disciplinary field, as well as unify the general rules of dispute resolution in the bodies of alternative (arbitration) jurisdiction, appeals against their decisions.
    Keywords: Sport law,Self-regulatory Organizations,Sports Arbitration Court,Sports Arbitration,Civil law scholarship,Corporation law,Partnerships
    Date: 2020–12–16
  4. By: Gorecki, Paul
    Abstract: In January 2021 the government department with responsibility for competition policy in Ireland proposed that for mergers notified to competition agency on a voluntarily (as opposed to mandatory) basis that the agency be empowered: (i) to make interim orders preventing the implementation of the transaction; and, (ii) to unwind a completed merger so as to restore pre-merger status quo. No rationale or justification was offered. This paper examines the proposed powers in relation to the record of the competition agency’s long standing procedure for dealing with non-notifiable mergers, and, the possible hypothetical use of the powers in a two-to-one merger notified on a voluntary basis in 2017. The competition agency procedure for dealing with non-notifiable mergers that raise competition concerns has worked well. The case study reinforces this conclusion. Government needs to furnish a compelling rationale for the proposals to go forward.
    Keywords: mergers; voluntary notification; non-notifiable mergers; and, Competition Act 2002.
    JEL: G34 K21 L44
    Date: 2021–03–15
  5. By: Jason Bantjes (Department of Psychology, Stellenbosch University); Sophia du Plessis (Department of Economics, Stellenbosch University); Ada Jansen (Department of Economics, Stellenbosch University); Krige Siebrits (Department of Economics, Stellenbosch University)
    Abstract: While a large body of research has established that effective enforcement of speeding laws is essential for reducing the economic and social costs of road accidents, some studies have suggested that interventions aimed at moral beliefs about speeding and peer-related and other social contagion effects may be important complements to law enforcement activities. This article presents tentative evidence of the complementary nature of interventions to influence moral beliefs and steps to strengthen the enforcement of traffic laws. It does this by presenting and discussing the results of a survey that elicited information about the attitudes of motorists in Cape Town regarding speeding fines and aspects of the administration of traffic laws in South Africa. The self-reported fine-paying of the respondents correlates with instrumental factors shaped by the effectiveness of enforcement actions (e.g. compliance and monetary costs) as well as normative factors influenced by the moral beliefs of drivers and their social groups as well as the perceived legitimacy of traffic laws and officials. Regression results also provide evidence of a statistically significant relationship between the respondents' self-reported fine-paying behaviour and their moral beliefs regarding payment of speeding fines.
    Keywords: Road safety, speeding laws, law enforcement, South Africa, AARTO Act
    JEL: R41 R48
    Date: 2021
  6. By: Christian Ben Lakhdar (University of Lille); Xavier Elharrar (CHIAP - Centre Hospitalier d'Aix en Provence [Aix-en-Provence]); K. Gallopel-Morvan (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, EA MOS - EA Management des Organisations de Santé - EHESP - École des Hautes Études en Santé Publique [EHESP] - PRES Sorbonne Paris Cité, EHESP - École des Hautes Études en Santé Publique [EHESP], IDM - Institut du Management - EHESP - École des Hautes Études en Santé Publique [EHESP]); F.-C. Wolff (University of Nantes, 44007 Nantes, France)
    Abstract: Objectives: In 2017, one in four French 17-year-olds was a daily smoker, even though France prohibited the sale of tobacco to under-18 minors in 2009. This research aims to evaluate the retail violation rate for sale to minors (RVRms) and the associated factors. Study design: The study design used is observational mystery shopping study. Methods: We conducted a mystery shopping study enlisting 12-year-old and 17-year-old youths in a representative sample of 527 tobacco outlets during three weeks in spring 2019. Multinomial Logit and Probit regressions were estimated on the data collected. Results: The law is not respected. Two of three sellers (65.2%) were willing to make an illegal sale to a 17-year-old minor, and almost one in 12 (8.1%) were willing to sell to a 12-year-old child attempting to buy tobacco. Illegal sales were more likely to be made by male sellers, retailing in big cities, when there were no in-shop queues, and to 17-year-old females. The absence of the mandatory enforcement poster flagging up the ban on the sale of tobacco to minors appears to be a strong factor associated with RVRm. Conclusions: These findings show that progress needs to be made to better enforce tobacco control legislation to help decrease underage smoking in France. Rate of compliance with the law could be improved by stronger enforcement measures and tougher sanctions, but also by training and the provision of age-verification tools for sellers, as demonstrated by experiments in other countries.
    Keywords: France,Mystery shopper,Tobacco,Underage sales
    Date: 2020–08
  7. By: Shamena Anwar; Patrick Bayer; Randi Hjalmarsson
    Abstract: We analyze the extent and consequences of unequal representation on juries in Harris County, Texas. We first document that residents from predominantly white and high-income neighborhoods are substantially over-represented on juries. Using quasi-random variation in those called for jury duty each day, we next establish that Black defendants are more likely to be convicted and receive longer sentences from juries with more residents from these over-represented neighborhoods. We estimate that equal representation would reduce Black defendants’ median sentence length by 50 percent and the probability of receiving a life sentence by 67 percent. Straightforward remedies could mitigate this severe bias.
    JEL: J15 K4
    Date: 2021–03

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