France relies exclusively on lay assessors to solve conflicts between entrepreneurs and employees for the longest time compared to any other civil jurisdiction. Given the lack of legal training of labor judges, the paper tests whether an intensification in the offer for legal services, whether coming from professional judges or specialized labor lawyers, induces delays in the procedure. Using a two-stage least squared estimating method and an innovative dataset on French labor courts between 2013 and 2017, the manuscript estimates the effect of an increase in the intervention of legal experts in labor litigation. The analysis showed that referrals to a professional judge delay labor cases’ solutions but refuted the long-standing economic theory that lawyers induce delay to acquire higher fees. This study indicates that the current structure of employment courts, entirely left in the hand of laymen with little knowledge of the ever-changing labor legislation, should be reconsidered to foster collaborative solutions accounting for industrial experience and, at the same time, legal competency.
France relies on unionized judges to assess labor cases in court. The economic literature advocates that judges pertaining to the more belligerent unions alter judicial equilibrium, foster lower settlements, avoid trials, and intensify a professional judge's interventions. This paper intends to test whether such speculations are accurate. The empirical evidence provided here suggests that such fears are not grounded. Using a database on French employment courts, between 2012 and 2016, we show that judges from the most adversarial trade unions foster conciliation and reduce the number of dropped legal cases. The lack of statistically significant impact of unions on the judicial institution's dysfunctions is evident: the labor judiciary's alleged polarization does not drive the rate of appeals and the number of professional judges' intervention. Finally, the judicial malfunctions appear to be driven by institutional distortions and local socio-economic conditions.
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