Employment Law and the Labor Market
Legal rules governing the employer-employee relationship are many and varied. Economic analysis has illuminated both the efficiency and the effects on employee welfare of such rules, as described in this paper. Topics addressed include workplace safety mandates, compensation systems for workplace injuries, privacy protection in the workplace, employee fringe benefits mandates, targeted mandates such as medical and family leave, wrongful discharge laws, unemployment insurance systems, minimum wage rules, and rules requiring that employees receive overtime pay. Both economic theory and empirical evidence are considered.
This paper is forthcoming as a chapter in the Handbook of Law and Economics. Thanks to Louis Kaplow, Daniel Klaff, Cass Sunstein, and participants at the March 13, 2004, conference for contributors to the Handbook for helpful comments and discussions, and to Kenneth Moon for outstanding research assistance. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.