This is a recurring event: View all events in the series “Research Seminar in Economics”
The Research Seminar in Economics is a platform for invited speakers to present their current research, thereby facilitating the exchange between speakers and faculty members of the City University of London.
It covers empirical as well as theoretical contributions across all fields of economics. The Research Seminar in Economics is usually held weekly during the academic term.
This event is open to Department of Economics faculty and postgraduate students. Please contact firstname.lastname@example.org or nicolas.Navarrete-Hernandez@city.ac.uk for any enquiries.
Margarita Tsoutsoura (Samuel Curtis Johnson Graduate School of Management, Cornell University)
- Associate Professor of Finance
- John and Dyan Smith Professor of Management and Family Business
Judicial decisions in bankruptcy are often influenced by the goal of preserving employment. Using the text of judicial decisions and the random assignment of cases across courts in the state of São Paulo in Brazil, we construct a novel court-level measure of pro-labor bias and study its effect on labor market outcomes.
Employees of distressed firms assigned to high pro-labor courts are more likely to stay with their employer; however, they experience a 4.5% decline in earnings. This effect is driven by wage adjustments, it is stronger for workers with better outside options, and concentrated in periods of economic expansion.
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