Unité mixte de recherche 7235

Bankruptcy and the difficulty of firing

Nicolae Stef

Firms may use layoffs as an ex ante mechanism to avoid filing for bankruptcy. However, the national labor law may impose some restrictions that delay or hamper the firing decision of the employer. This study proposes a different legal pathway for policymakers whose goal is to reduce the use of bankruptcy without acting on the design of the bankruptcy law. Using a sample of 33 countries from 2007 to 2015, we show that the total amount of firing restrictions leads to more bankruptcies. The employer’s legal obligation to notify a third party prior the dismissal of one employee tends to increase the number of bankruptcies. It is very likely that the employer’s rescue strategy endures an intense ex post monitoring of the employment contracts and/or a strong legal opposition to the layoff decision from such third party. In addition, labor codes that apply priority rules in case of reemployment can increase the use of bankruptcy.

AGENDA

jeudi 22 février 2024

Colloques et Workshops

Crises and resilience in developing countries

lundi 26 février 2024

Law, Institutions and Economics in Nanterre (LIEN)

Jean Lacroix (U Paris Saclay, RITM)

Domino Secessions : Evidence from the US

mardi 27 février 2024

Colloques et Workshops

Harcèlement moral et sexuel dans la recherche

jeudi 29 février 2024

Lunch

Nouveaux Doctorants II

Thomas Jacquet, Amady Léchenet, Albin Salmon, Benjamin Trouvé

jeudi 29 février 2024

Groupe de travail Economie Comportementale

Claire Rimbaud (U. Dauphine)

Playing Dumb to Look Green

lundi 4 mars 2024

Law, Institutions and Economics in Nanterre (LIEN)

Shiva Shekhar (Tilburg Univ)

The Bright Side of the GDPR: Welfare-improving Privacy Management

mardi 5 mars 2024

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

Thomas Angeletti (Université Paris Dauphine PSL & IRISSO CNRS)

L’invention de l’économie française

mardi 5 mars 2024

Webinar TELE – Theoretical European Law & Economics

Ester Manna (University of Barcelona, Spain)

3:00 pm to 4:15 pm (Paris time)

TBA

Inscription aux Newsletters