This paper provides new measures of labor law enforcement across the world. The constructed dataset shows that countries with more stringent de jure regulation tend to enforce less. While civil law countries tend to have more stringent de jure labor codes as predicted by legal origin theory,...

This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Two politicoeconomic equilibria arise from our model, one with little protection of insiders on capital and labor markets, and another one with...