The Costs of Wrongful-Discharge Laws

A-Tier
Journal: Review of Economics and Statistics
Year: 2006
Volume: 88
Issue: 2
Pages: 211-231

Authors (3)

David H. Autor (Massachusetts Institute of Tec...) John J. Donohue (not in RePEc) Stewart J. Schwab (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We estimate the effects on employment and wages of wrongful-discharge protections adopted by U.S. state courts during the last three decades. We find robust evidence that one wrongful-discharge doctrine, the implied-contract exception, reduced state employment rates by 0.8% to 1.7%. The initial impact is largest for female and less-educated workers (those who change jobs frequently), while the longer-term effect is greater for older and more-educated workers (those most likely to litigate). By contrast, we find no robust employment or wage effects of two other widely recognized wrongful-discharge laws: the public-policy and goodfaith exceptions. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Technical Details

RePEc Handle
repec:tpr:restat:v:88:y:2006:i:2:p:211-231
Journal Field
General
Author Count
3
Added to Database
2026-01-24