Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp017s75dc371
 Title: Let's go to court! Firing costs and dismissal conflicts Authors: Galdon-Sanchez, JoseGuell, Maia Keywords: dismissal conflictsworkerfirm court Issue Date: 1-Aug-2000 Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 444 Abstract: In this paper we analyze court outcomes of dismissal conﬂicts for several countries. We highlight two facts. First, the patterns found are extremely stable in every country over time. Second, two types of patterns are found: either the workers win most of the cases, or the worker and the ﬁrm win half the times each. We build a model of dismissal conﬂicts that explains these facts. The gap between the severance pay for fair and unfair dismissals is a key factor in the determination of such court outcomes. Those countries with a small gap have outcomes in which the workers win most of the time, and the average cost of firing is higher than in those countries with a smaller gap. This suggests that costly dismissals and rigid employment protection legislation are not necessarily synonymous. URI: http://arks.princeton.edu/ark:/88435/dsp017s75dc371 Appears in Collections: IRS Working Papers

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