arXiv Open Access 2022

Bankruptcy Shocks and Legal Labor Markets: Evidence from the Court Competition Era

Chad Brown Jeronimo Carballo Alessandro Peri

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Abstrak

We study how Chapter 11 bankruptcies affect local legal labor markets. We document that bankruptcy shocks increase county legal employment and corroborate this finding by exploiting a stipulation of the law known as Forum Shopping during the Court Competition Era (1991-1996). We quantify losses to local communities from firms forum shopping away from their local area as follows. First, we calculate the unrealized potential employment gains implied by our reduced-form results. Second, we structurally estimate a model of legal labor markets and quantify welfare losses. We uncover meaningful costs to local communities from lax bankruptcy venue laws.

Topik & Kata Kunci

econ.GN

Penulis (3)

Chad Brown

Jeronimo Carballo

Alessandro Peri

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Brown, C., Carballo, J., Peri, A. (2022). Bankruptcy Shocks and Legal Labor Markets: Evidence from the Court Competition Era. https://arxiv.org/abs/2202.00044

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Informasi Jurnal

Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓