Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Economic Analysis of Labor Law

  • Luciana YeungEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_693


The literature on labor relations has been very much divided, mainly between the classical economic approach and the legal/sociological one. An economic analysis of labor law would benefit by abridging both perspectives and complementing with more. This entry provides brief comments of why whether a purely economic approach on labor or a purely legal approach based on capital vs. labor dichotomy is not sufficient to properly address the subject. Several topics related to labor regulation are discussed, and empirical references on those issues are provided.

This is a preview of subscription content, log in to check access.


  1. Aidt TS, Tzannatos Z (2008) Trade unions, collective bargaining and macroeconomic performance: a review. Ind Relat J 39(4):258–295CrossRefGoogle Scholar
  2. Anner M (2011) Unionization and wages: evidence from the apparel export sector in Central America. Ind Labor Relat Rev 64(2):305–322CrossRefGoogle Scholar
  3. Autor DH (2003) Outsourcing at will: the contribution of unjust dismissal doctrine to the growth of employment outsourcing. J Labor Econ 21(1):1–42CrossRefGoogle Scholar
  4. Bachmann R, Braun S (2008) The impact of international outsourcing on labour market dynamics in Germany the impact of international outsourcing on labour market dynamics in Germany. Ruhr Econ Pap 58(1):1–29Google Scholar
  5. Barnes P (2004) The auditor’s going concern decision and types I and II errors: the Coase theorem, transaction costs, bargaining power and attempts to mislead. J Account Public Policy 23(6):415–440CrossRefGoogle Scholar
  6. Blanchard O, Giavazzi F (2003) Macroeconomic effects of regulation and deregulation in goods and labor markets. Q J Econ 118(3):879–907CrossRefGoogle Scholar
  7. Borjas GJ (2016) Labor economics, 7th edn. McGraw Hill Education, New YorkGoogle Scholar
  8. Botero JC, Djankov S, Porta RL, Lopez-De-Silanes F, Shleifer A (2004) The regulation of labor. Q J Econ 119(4):1339–1382CrossRefGoogle Scholar
  9. Coase RH (1960) The problem of social cost. J Law Econ 3:1–44CrossRefGoogle Scholar
  10. Cooter R, Ulen T (2007) Law and economics, 5th edn. Addison Wesley, BostonGoogle Scholar
  11. Doringer PB, Piore MJ (1971) Internal labor markets and manpower analysis. Heath, LexingtonGoogle Scholar
  12. Galiani S, Torrens G, Yanguas ML (2014) The political Coase theorem: experimental evidence. J Econ Behav Organ 103:17–38CrossRefGoogle Scholar
  13. Hoffman SD (2016) Are the effects of minimum wage increases always small? A reanalysis of Sabia, Burkhauser, and Hansen. Ind Labor Relat Rev 69(2):295–311CrossRefGoogle Scholar
  14. Howell DR, Rehm M (2009) Unemployment compensation and high European unemployment: a reassessment with new benefit indicators. Oxf Rev Econ Policy 25(1):60–93CrossRefGoogle Scholar
  15. Krueger AB (2015) The history of economic thought on the minimum wage. Ind Relat 54(4):533–537CrossRefGoogle Scholar
  16. Litwinski JA (2001) Regulation of labor market monopsony. Berkeley J Employ Labor Law 22:49–98Google Scholar
  17. Ludsteck J, Seth S (2014) Comment on ‘unemployment compensation and wages: evidence from the German Hartz reforms’ by Stefan Arent and Wolfgang Nagl. Jahrb Natl Stat 234(5):635–644Google Scholar
  18. Nicholson W, Needels K, Hock H (2014) Unemployment compensation during the great recession: theory and evidence. Natl Tax J 67(1):187–218CrossRefGoogle Scholar
  19. Piore MJ (1969) On-the-job training in the dual labor market. In: Arnold R, Weber FC, Woodrow LG (eds) Public-private manpower policies. Industrial Relations Research Association, University of Wisconsin., 1969, Madison, pp 101–132Google Scholar
  20. Posner RA (2003) Economic analysis of law, 6th edn. Aspen Publishers, New YorkGoogle Scholar
  21. Stein G, Zylberstajn E, Zylberstajn H (2015) Diferencial de Salários da Mão de Obra Terceirizada no Brasil. Working Paper 400, São Paulo School of Economics, FGV, CMICRO – No. 32, Working Paper Series (Ago 7). Available at: http://bibliotecadigital.fgv.br/dspace/handle/10438/13883
  22. Trubeck DM, Mosher J, Rothstein JS (2000) Transnationalism in the regulation of labor relations: international regimes and transnational advocacy networks. Law Soc Inq 25:1187–1211CrossRefGoogle Scholar

Further Reading

  1. Aubuchon C, Bandyopadhyay S, Bhaumik SK (2012) The extent and impact of outsourcing: evidence from Germany. Fed Reserve Bank St Louis Rev 94(4):287–304Google Scholar
  2. Dickens W, Franco F, Landier A, Nicoletti G, Spector D, Solow R, … Alesina A (2003) Macroeconomic effects of regulation and. Europe 879–908Google Scholar
  3. Laporšek S (2013) Minimum wage effects on youth employment in the European Union. Appl Econ Lett 20(14):1288–1292CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Insper Institute of Education and ResearchSão PauloBrazil