Litigation and Settlement: New Evidence from Labor Courts in Mexico


Book Description

Abstract: Using a newly assembled data set on procedures filed in Mexican labor tribunals, the authors of this paper study the determinants of final awards to workers. On average, workers recover less than 30 percent of their claim. The strongest result is that workers receive higher percentages of their claims in settlements than in trial judgments. It is also found that cases with multiple claimants against a single firm are less likely to be settled, which partially explains why workers involved in these procedures receive lower percentages of their claims. Finally, the authors find evidence that a worker who exaggerates his or her claim is less likely to settle.




Litigation and Settlement


Book Description

Using a newly assembled data set on procedures filed in Mexican labor tribunals, the authors of this paper study the determinants of final awards to workers. On average, workers recover less than 30 percent of their claim. The strongest result is that workers receive higher percentages of their claims in settlements than in trial judgments. It is also found that cases with multiple claimants against a single firm are less likely to be settled, which partially explains why workers involved in these procedures receive lower percentages of their claims. Finally, the authors find evidence that a worker who exaggerates his or her claim is less likely to settle.




Enforceability of Labor Law: Evidence from a Labor Court in Mexico


Book Description

The authors analyze lawsuits involving publicly-appointed lawyers in a labor court in Mexico to study how a rigid law is enforced. They show that, even after a judge has awarded something to a worker alleging unjust dismissal, the award goes uncollected 56 percent of the time. Workers who are dismissed after working more than seven years, however, do not leave these awards uncollected because their legally-mandated severance payments are larger. A simple theoretical model is used to generate predictions on how lawsuit outcomes should depend on the information available to the worker and on the worker's cost of collecting an award after trial, both of which are determined in part by the worker's lawyer. Differences in outcomes across lawyers are consistent with the hypothesis that firms take advantage both of workers who are poorly informed and of workers who find it more costly to collect an award after winning at trial.




Managing Class Action Litigation


Book Description







Healthcare Antitrust, Settlements, and the Federal Trade Commission


Book Description

This volume of Research in Law and Economics contains articles that address important legal and economic developments in the areas of healthcare, intellectual property and labor settlements, competitive effects, cartel overcharges, and the U.S. Federal Trade Commission (FTC)




Workers Before the Court


Book Description

Law and justice are studied in this book from the perspective of social and global history. The main focus of Workers Before the Tribunal is to overcome traditional binary oppositions between corporativist and contratualist models of labor relations, the former representing a view in which the working class would have more autonomy in struggling for better labor conditions, the latter meaning the protagonism of the State in promoting labor rights. Teixeira da Silva presents three main arguments. First, he shows that the Brazilian labor justice system created during the Getúlio Vargas dictatorship (1930-1945), although inspired by Mussolini's legal order in Italy, is very different from the Fascist Magistratura del Lavoro. Second, in his comparative analysis with other national cases, such as the United States, France, Germany and Australia, the author argues that there was a large circulation of ideas and practices, resulting in a more complex dynamic of appropriation of international ideas on labor rights and institutions in Brazil. Third, Teixeira da Silva demonstrates that litigation in labor courts was one strategy of the working-class movement in Brazil, together with strikes and other means of confrontation. Therefore, he questions historiographical and political approaches that see labor justice as a weak substitute for class action. The "jurisdictionalization" of labor relations became a constitutive element in the making of the Brazilian working class. The book is anchored in the research of hundreds of labor litigation cases during the dramatic months preceding the 1964 civil-military coup d’état that inaugurated a quarter century of dictatorial rule in Brazil.




Under-Rewarded Efforts


Book Description

Why has an economy that has done so many things right failed to grow fast? Under-Rewarded Efforts traces Mexico’s disappointing growth to flawed microeconomic policies that have suppressed productivity growth and nullified the expected benefits of the country’s reform efforts. Fast growth will not occur doing more of the same or focusing on issues that may be key bottlenecks to productivity growth elsewhere, but not in Mexico. It will only result from inclusive institutions that effectively protect workers against risks, redistribute towards those in need, and simultaneously align entrepreneurs’ and workers’ incentives to raise productivity.




Shared Prosperity and Poverty Eradication in Latin America and the Caribbean


Book Description

Over the last decade Latin America and the Caribbean region has achieved important progress towards the World Bank Group's goals of eradicating extreme poverty and boosting income growth of the bottom 40 percent, propelled by remarkable economic growth and falling income inequality. Despite this impressive performance, social progress has not been uniform over this period, and certain countries, subregions and even socioeconomic groups participated less in the growth process. As of today, more than 75 million people still live in extreme poverty in the region (using $2.50/day/capita), half of them in Brazil and Mexico, and extreme poverty rates top 40 percent in Guatemala and reach nearly 60 percent in Haiti. This means that extreme poverty is still an important issue in both low- and middle-income countries in the region. As growth wanes and progress in reducing the still high levels of inequality in the region slows, it will be more important than ever for governments to focus policies on inclusive growth. The book includes an overview that highlights progress towards the goals of poverty eradication and shared prosperity between 2003 and 2012, unpacks recent gains at the household level using an income-based asset model, and examines some of the policy levers used to affect social outcomes in the region. It draws on 13 country studies, eight of which are featured in this volume: Argentina, Brazil, Colombia, El Salvador, Mexico, Paraguay, Peru, and Uruguay. The other case studies include: Bolivia, Chile, Dominican Republic, Ecuador, and Honduras, which will be included in the web version of the book.




Exports to Jobs


Book Description

South Asia has grown rapidly with significant reductions in poverty, but it has not been able to match the fast-growing working age population, leading to lingering concerns about jobless growth and poor job quality. Could export growth in South Asia result in better labor market outcomes? The answer is yes, according to our study, which rigorously estimates—using a new methodology—the potential impact from higher South Asian exports per worker on wages and employment over a 10-year period. Our study shows the positive side of trade. It finds that increasing exports per worker would result in higher wages—mainly for better-off groups, like more educated workers, males, and more-experienced workers—although less-skilled workers would see the largest reduction in informality. How can the benefits be spread more widely? Our study suggests that scaling up exports in labor-intensive industries could significantly lower informality for groups like rural and less-educated workers in the region. Also, increasing skills, and participation of women and young workers in the labor force could make an even bigger dent in informal employment. The region could achieve these gains by: (i) boosting and connecting exports to people (e.g., removing trade barriers and investment in infrastructure); (ii) eliminating distortions in production (e.g., by more efficient allocation of inputs); and (iii) protecting workers (e.g., by investing in education and skills).