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

Autor:	Brown, Chad, Carballo, Jeronimo, Peri, Alessandro
Rok vydání:	2022
Předmět:	Economics - General Economics
Druh dokumentu:	Working Paper
DOI:	10.1086/728370
Popis:	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. Comment: 57 pages, 7 figures
Databáze:	arXiv
Externí odkaz:	http://arxiv.org/abs/2202.00044 Zobrazit plný text záznamu View this record from Arxiv