Can Wrongful Discharge Law Enhance Employment?

61 Pages Posted: 27 Jun 2007

See all articles by W. Bentley MacLeod

W. Bentley MacLeod

Columbia University - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Voraprapa Nakavachara

Faculty of Economics, Chulalongkorn University

Date Written: 0000

Abstract

The extent of government in private contractual relationships is a vexing public policy issue. This article explores, both theoretically and empirically, the degree to which such intervention may enhance employment. Economists traditionally have held that interventions such as wrongful discharge protections simply undo the original intent of the parties to an employment contract. We find that both good faith as well as implied contract exceptions to employment-at-will may enhance employment, particularly in occupations characterised by high levels of investment and skill. This suggests that under the appropriate conditions, labour law may enhance the operation of a competitive market.

Suggested Citation

MacLeod, William Bentley and Nakavachara, Voraprapa, Can Wrongful Discharge Law Enhance Employment? (0000). The Economic Journal, Vol. 117, Issue 521, pp. F218-F278, June 2007. Available at SSRN: https://ssrn.com/abstract=996247 or http://dx.doi.org/10.1111/j.1468-0297.2007.02056.x

William Bentley MacLeod (Contact Author)

Columbia University - Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics ( email )

P.O. Box 7240
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Voraprapa Nakavachara

Faculty of Economics, Chulalongkorn University ( email )

Bangkok 10330
Thailand

HOME PAGE: http://pioneer.netserv.chula.ac.th/~nvorapra/

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