nep-law New Economics Papers
on Law and Economics
Issue of 2024‒01‒29
five papers chosen by
Yves Oytana, Université de Franche-Comté

  1. The Impact of Comprehensive Student Support on Crime By Adam Lavecchia; Philip Oreopoulos; Noah Spencer
  2. The Path of Improving the Legal Protection of Financial Consumers' Right to Privacy By Lucas, Brianna
  3. Profit-with-purpose corporations: Why purpose needs law and why it matters for management By Blanche Segrestin; Kevin Levillain
  4. Do College Anti-Plagiarism/Cheating Policies Have Teeth in the Age of AI? Evidence from the United States By Rajeev K. Goel; Michael A. Nelson
  5. When Protection Becomes Exploitation: The Impact of Firing Costs on Present-Biased Employees By Florian Englmaier; Matthias Fahn; Ulrich Glogowsky; Marco A. Schwarz; Marco Alexander Schwarz

  1. By: Adam Lavecchia; Philip Oreopoulos; Noah Spencer
    Abstract: This study finds substantial reductions to criminal activity from the introduction of a comprehensive high school support program for disadvantaged youth living in the largest public housing project in Toronto. The program, called Pathways to Education, bundles supports such as regular coaching, tutoring, group activities, free public transportation tickets and bursaries for postsecondary education. In this paper, we use a difference-in-differences approach that compares students living in public housing communities where the program was offered to those living in communities where the program was not offered over time. We find that eligibility for Pathways reduces the likelihood of being charged with a crime by 32 percent at its Regent Park location. This effect is driven by a reduction in charges for breaking and entering, theft, mischief and other traffic offenses and Youth Criminal Justice Act offenses.
    Keywords: At-risk youth; education and crime; youth programs
    JEL: I24 I26 I28 L31
    Date: 2024–01
  2. By: Lucas, Brianna
    Abstract: In recent years, there have been numerous incidents of financial consumers' privacy being infringed upon, and both ordinary consumers and scholars and experts have been paying more and more attention to the protection of financial privacy. Financial privacy is the embodiment and extension of the right to privacy in the financial field, strengthening the protection of financial privacy is an important part of regulating the development of the financial industry, and it is also the main aspect of China's financial law reform. China should learn from the advanced legislative experience of Britain and the United States in the protection of financial consumers' right to privacy, and realize the all-round protection of financial consumers' right to privacy from the aspects of clarifying the concept of financial privacy, perfecting the legislation on the right to privacy, and constructing the mechanism of judicial remedy for the right to privacy.
    Date: 2023–12–27
  3. By: Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique); Kevin Levillain (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this contribution, we present the recent reform of corporate law in France (2017-2019) and discuss its implication at two levels. So far, "purpose" was mainly a managerial concept, and most efforts to make corporations responsible have not changed the legal constitution of the corporation. By contrast, the French reform first revises corporate law and introduces the purpose in the constitution of the corporation; it thus prompts a reexamination of former approaches of the purpose of the corporation. Second, with its two components, a duty of vigilance and the possibility for any company to become "société à mission, " it brings into corporate law some principles to manage the future corporate activities. We argue that it is based on a conceptualization of management that deeply differs from traditional legal representations of management. We show that this shift calls for new research at the intersection of law and management.
    Keywords: accountability, corporate governance, corporate purpose, corporate social responsibility, law, purpose of the corporation
    Date: 2023–12
  4. By: Rajeev K. Goel; Michael A. Nelson
    Abstract: The advent of the internet, and more recently of artificial intelligence (AI), has challenged academic and other institutions to ensure ethical practices and reward/promote true merit. The borderless and relatively anonymous nature of the internet creates policing challenges, leading to the abuse of established rules and standards. In the context of academia, this impacts the size and scope of resources to facilitate/check plagiarism and cheating, both from the demand and supply sides. Adding some formal insights into the current topic of fundamental importance to maintaining academic integrity, this paper examines the association of anti-plagiarism/anti-cheating policies with resources that facilitate such behavior (legal or otherwise). Using unique internet search indices of the policies and resources, we find that the two are positively associated – the associated resources ratchet up with the policies. This association is robust to different modeling formulations, including when the internet policies include course syllabi. The findings reinforce the view that policies to check plagiarism and cheating are likely to lack teeth and may be a step behind the resources that facilitate unethical behaviour.
    Keywords: AI, artificial intelligence, plagiarism, cheating, internet, universities, colleges, United States
    JEL: A20 I23 L86
    Date: 2023
  5. By: Florian Englmaier; Matthias Fahn; Ulrich Glogowsky; Marco A. Schwarz; Marco Alexander Schwarz
    Abstract: Employment protection harms early-career employees without benefitting them in later career stages (Leonardi and Pica, 2013). We demonstrate that this pattern can result from employers exploiting naïve present-biased employees. Employers offer a dynamic contract with low early-career wages, an unattractive intermediate qualification stage, and high end-of-career wages. Upon reaching the qualification stage, present-biased employees exchange future wages for immediate rewards on an alternative career path – a choice unanticipated by their previous, naïve, self. Thus, employers never pay high future wages. Firing costs help employers indicate that they will not oust employees instead of making promised payments, enabling early-career wage cuts.
    Keywords: employment protection laws, present bias, dynamic contracting
    JEL: D21 D90 J33 K31 M52
    Date: 2023

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