nep-law New Economics Papers
on Law and Economics
Issue of 2024‒02‒12
four papers chosen by
Yves Oytana, Université de Franche-Comté

  1. Culture, Law, and Contractual Relations By Alireza Naghavi; Giuseppe Pignataro; Katja Zajc Kejzar
  2. The Impact of Comprehensive Student Support on Crime: Evidence from the Pathways to Education Program By Adam M. Lavecchia; Philip Oreopoulos; Noah Spencer
  3. Legalization and Long-Term Outcomes of Immigrant Workers By Claudio Deiana; Ludovica Giua; Roberto Nisticò
  4. DACA, Mobility Investments, and Economic Outcomes of Immigrants and Natives By Jimena Villanueva Kiser; Riley Wilson

  1. By: Alireza Naghavi; Giuseppe Pignataro; Katja Zajc Kejzar
    Abstract: This paper explores the role of culture in firm organization and its interplay with legal enforcement in determining the organization and longevity of buyer-supplier relationships. We provide theory and evidence, showing how individualism and legal enforcement interact and affect firm behavior in industries with different technological characteristics. A higher level of individualism in source countries encourages integration (outsourcing) in high-(low-) technology industries. Legal institutions could increase the duration of contractual relationships by encouraging customization effort by individualistic suppliers with a sense of pride, while preventing infringement of sensitive technologies by those less concerned about self-achievement. Enforcement could however adversely affect the continuity of trade relations in more individualistic societies.
    Keywords: Individualism; Supplier relation longevity; Legal institutions; Firm organization; Technology; Infringement; Knowledge absorption; Contract enforcement; Customization; Pride
    JEL: L24 O32 Z10 K42 F14 F23 D23
    Date: 2023–05–10
  2. By: Adam M. 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, other traffic offenses and Youth Criminal Justice Act offenses.
    JEL: I2 I30
    Date: 2024–01
  3. By: Claudio Deiana (University of Cagliari and University of Essex); Ludovica Giua (University of Cagliari and University of Essex); Roberto Nisticò (University of Naples Federico II, CSEF and IZA)
    Abstract: This paper establishes a new fact about immigration policies: legalization has long- term effects on formal employment of undocumented immigrants and their assimilation. We exploit the broad amnesty enacted in Italy in 2002 together with rich survey data collected in 2011 on a representative sample of immigrant households to estimate the effect of regularization in the long run. Immigrants who were not eligible for the amnesty have a 14% lower probability of working in the formal sector a decade later, are subject to more severe ethnic segregation on the job and display less linguistic assimilation than their regularized counterparts.
    Keywords: Undocumented immigrants; Amnesty program; Formal employment; Discrimination; Segregation
    JEL: J15 J61 K37
  4. By: Jimena Villanueva Kiser (Brigham Young University); Riley Wilson (Brigham Young University)
    Abstract: Exploiting variation created by Deferred Action for Childhood Arrivals (DACA), we document the effects of immigrant legalization on immigrant mobility investments and economic outcomes. We provide new evidence that DACA increased both geographic and job mobility of young immigrants, often leading them to high-paying labor markets and licensed occupations. We then examine whether these gains to immigrants spill over and affect labor market outcomes of U.S.-born workers. Exploiting immigrant enclaves and source-country flows of DACA-eligible immigrants to isolate plausibly exogenous variation in the concentration of DACA recipients, we show that in labor markets where more of the working-age population can access legal protection through DACA, U.S.-born workers see little-to-no change in employment rates and actually observe increases in wage earnings after DACA’s implementation. These gains are concentrated among older and more educated workers, suggesting immigrant workers complement U.S.-born workers and immigrant legalization generates broader local labor market benefits.
    Keywords: Legal states, DACA, immigration, geographic mobility, job mobility, occupational licensing, local labor markets
    JEL: J15 K37 R23
    Date: 2024–01

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