When a firing litigation is taken to court, only the characteristics of the employee's misconduct should be relevant for the judge's decision. Using data from an Italian bank this paper shows that, instead, local labor market conditions influence the court's decision: the same misconduct episode...

When a firing litigation is taken to court, only the characteristics of the employees’ misconduct should be relevant for the judge’s decision. Using data from an Italian bank this Paper shows that, instead, local labour market conditions influence the court’s decision: the same misconduct...