Settlement probability asymmetries in the Swedish Labour Court

This paper focuses on settlement probabilities for different types of representation within the Swedish Labour Court. Empirical estimates on a set of cases concerned with unjust dismissals show that private representatives are generally less likely to reach a settlement than their union counterparts. The settlement probabilities converge following court-mandated information disclosure, which suggests that information asymmetry is an important factor in explaining differences in settlement behaviour and that private negotiations are not sufficient in general.