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Teaching Labor Laws: Evidence from a Randomized Control Trial in South Africa

  • Marianne Bertrand
  • Bruno Crépon
American Economic Journal: Applied Economics
vol. 13, no. 4, October 2021
(pp. 125-49)
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Abstract

We assess whether imperfect knowledge of labor regulation hinders job creation at small and medium-sized firms. We partner with a labor law expert organization that provides information about labor regulation via newsletters and access to a specialized website. We randomly assign 1,800 firms to get access to this service for a 21-week period. Six months later, the average employment level at treatment firms was 12 percent higher than at control firms. The intervention decreased the perception that labor regulation is a constraint to hiring and increased optimal employment level.

Citation

Bertrand, Marianne, and Bruno Crépon. 2021. "Teaching Labor Laws: Evidence from a Randomized Control Trial in South Africa." American Economic Journal: Applied Economics, 13 (4): 125-49. DOI: 10.1257/app.20190497

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
  • J23 Labor Demand
  • J63 Labor Turnover; Vacancies; Layoffs
  • K31 Labor Law
  • L25 Firm Performance: Size, Diversification, and Scope
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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