In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and, eventually, deciding severance payments mandated by the employment protection legislation (EPL). To get some insights about the impact of...

This paper studies the role of labor courts in determining labor market outcomes in the Brazilian economy. First, by exploring the fact that judges are assigned randomly to cases and using the universe of labor lawsuits filed in the country's largest labor courthouse from 2008 to 2013, we show...