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The analysis of employment relationship in contract economic theories : a critical review based on the nature of American and French labor laws

Author

Listed:
  • Bernard Baudry

    (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Virgile Chassagnon

    (CREG - Centre de recherche en économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

Despite the numerous economic works on the nature of the firm, only a few studies have clearly taken into account the legal and institutional contexts of the employer-employee relationship. This paper aims at comparing the regulation rules of the employment relationship advocated by contract economic theories to the American and French labor laws in both a positive and normative perspective. From a positive perspective, the contract approaches to the firm – transaction cost economics, the nexus of contracts theory and the modern theory of property rights – are similar to the tradition of American labor law. However, from a normative point of view, it appears that if contract economic theories seem to be partially in line with certain principles of the French labor law, there is a strong inconsistency between these approaches and the role that the French legal system gives to the State and to the law courts (and judges).

Suggested Citation

  • Bernard Baudry & Virgile Chassagnon, 2018. "The analysis of employment relationship in contract economic theories : a critical review based on the nature of American and French labor laws," Post-Print halshs-01943180, HAL.
    • Handle: RePEc:hal:journl:halshs-01943180
    DOI: 10.4000/ei.6127
    as

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    Cited by:

    1. Carmine Guerriero, 2023. "Property rights, transaction costs, and the limits of the market," Economics of Governance, Springer, vol. 24(2), pages 143-176, June.

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