Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(6), 2005-2009 | DOI: 10.11118/actaun201563062005
How the Legal Environment Affects the Structure of Employment
- Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic
The quality of the institutional environment is considered a crucial determinant of economic growth. Low quality of the formal institutional environment can slow down economic development via various mechanisms described in the literature. The present paper will analyse formal institutional factors leading to the structure of employment that Murphy, Shleifer and Vishny (The Quarterly Journal of Economics, 1991) found to be associated with lower rate of economic growth. They assumed that a high proportion of lawyers in the country may be associated with slower economic development. Thus, the aim of the paper is to examine some of the parameters of institutional environment that can lead to such a distribution. Results show that quality of law measured by the World Bank (Doing Business database) and the Corruption Perception Index obtained from Transparency International may have some explanatory abilities regarding the structure of employment.
Keywords: labour market, law, lawyers, education, Corruption Perception Index, doing business
Grants and funding:
This paper was created as a part of the project supported by the internal grant PEF (IGA PEF) of Mendel University in Brno, No. 18/2015.
Prepublished online: December 26, 2015; Published: January 1, 2016 Show citation
References
- ACEMOGLU, A., JOHNSON, S. and ROBINSON, J. A. 2005. Institutions as a Fundamental Cause of Long-run Growth. Handbook of Economic Growth, 1: 385-472. DOI: 10.1016/S1574-0684(05)01006-3
Go to original source... - ANDERSSON, S. and HEYWOOD, P. M. 2009. The Politics of Perception: use and Abuse of Transparency International's Approach to Measuring Corruption. Political Studies, 57(4): 746-767. DOI: 10.1111/j.1467-9248.2008.00758.x Go to original source...
- BAUMOL, W. J. 1990. Entrepreneurship: Productive, Unproductive, and Destructive. Journal of Political Economy, 98(5, p. I): 893-921. DOI: 10.1086/261712 Go to original source...
- HALL, R. E. and JONES, C. I. 1999. Why Do Some Countries Produce So Much More Output per Worker Than Others? National Bureau of Economic Research.
- LITZMAN, M. and KOUBA, L. 2013. Extending Legislation: Effect on the Structure of Employment. In: Proceedings of the International Scientific Conference for Doctoral Students and Young Researchers - EDAMBA, 1: 920-927.
- MANKIW, N. G., ROMER, D. and WEIL, D. N. 1990. A Contribution to the Empirics of Economic Growth. National Bureau of Economic Research
- MURPHY, K. M., SHLEIFER, A. and VISHNY, R. W. 1990. The Allocation of Talent: Implications for Growth. National Bureau of Economic Research.
- MURPHY, K. M., SHLEIFER, A. and VISHNY, R. W. 1993. Why is Rent-seeking So Costly to Growth? The American Economic Review, 83(2): 409-414.
- NORTH, D. C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press. Go to original source...
- TANZI, V. and DAVOODI, H. R. 2002. Corruption, Growth, and Public Finances. In: JAIN, A. K. (ed.), Political Economy of Corruption. Routledge. Go to original source...
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.