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Judicial arbitration of unfair dismissal cases: The role of peer effects

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  • Freyens, Benoit Pierre
  • Gong, Xiaodong

Abstract

The paper analyses how peer effects affect judicial decisions over dismissal disputes in Australian labour courts. Using a panel of judges and data over 2000 unfair dismissal decisions we first test for selection effects and for randomized matching of judges to cases. We then use spatial econometrics methods to test whether individual judges’ decisions depend on the behaviour and/or characteristics of their peer group. We do not find evidence of endogenous (behavioural) peer effects, but we find significant exogenous (characteristics) peer effects.

Suggested Citation

  • Freyens, Benoit Pierre & Gong, Xiaodong, 2020. "Judicial arbitration of unfair dismissal cases: The role of peer effects," International Review of Law and Economics, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:irlaec:v:64:y:2020:i:c:s0144818820301605
    DOI: 10.1016/j.irle.2020.105947
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    Cited by:

    1. Benoit Pierre Freyens & Paul Oslington, 2021. "The impact of unfair dismissal regulation: Evidence from an Australian natural experiment," LABOUR, CEIS, vol. 35(2), pages 264-290, June.

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    More about this item

    Keywords

    Judicial decisions; Unfair dismissal cases; Peer effects;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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