Labour Regulation, Corporate Governance and Legal Origin: A Case of Institutional Complementarity?

U. of Cambridge Centre for Business Research Working Paper No. 312

ECGI - Law Working Paper No. 72/2006

58 Pages Posted: 26 Apr 2006

See all articles by Simon Deakin

Simon Deakin

University of Cambridge - Centre for Business Research (CBR); European Corporate Governance Institute (ECGI); University of Cambridge - Faculty of Law

Beth A. Ahlering

PA Consulting Group

Date Written: September 2005

Abstract

We explore the finding of La Porta et al. that differences in "legal origin" account for part of cross-national diversity in labour regulation and corporate governance. We suggest that the finding needs a better historical grounding and that a mechanism which might explain it has not been adequately spelled out. In search of an explanation we focus on the role of complementarities between legal and economic institutions, and in particular the part played by the distinctive "legal cultures" of the common law and civil law in setting national systems on separate pathways to economic development.

Keywords: Legal origin, complementarities, legal cultures, labour law, corporate governance

JEL Classification: G38, K22, K31, J53, J83

Suggested Citation

Deakin, Simon F. and Ahlering, Beth A., Labour Regulation, Corporate Governance and Legal Origin: A Case of Institutional Complementarity? (September 2005). U. of Cambridge Centre for Business Research Working Paper No. 312; ECGI - Law Working Paper No. 72/2006. Available at SSRN: https://ssrn.com/abstract=898184 or http://dx.doi.org/10.2139/ssrn.898184

Simon F. Deakin (Contact Author)

University of Cambridge - Centre for Business Research (CBR) ( email )

Top Floor, Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+ 44 1223 335243 (Phone)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

Beth A. Ahlering

PA Consulting Group ( email )

123 Buckingham Palace Road
London SW1W 9SR
United Kingdom

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