An EDI research project on labour law reform has been featured on the VoxDev website, helping to extend the reach and influence of this important study.

The Randomized Control Trial is led by Joyce Sadka and Enrique Seira, both from the Instituto Tecnológico Autónomo de México (ITAM), and Christopher Woodruff, from the University of Oxford.

Their study aims to provide insight into the sources of inefficiency in legal institutions. This is important because courts play a fundamental role in underpinning markets and constraining private power in developed markets, but they function poorly in most developing countries.

The project involves a randomised field experiment with the Mexico City Labour Court, in which they provided information on predicted case outcomes to parties in ongoing cases, with the aim of understanding if this information increased settlement rates.