Does the use of professional legal assistance bring measurable benefits?

ABSTRACT

In this paper, the first attempt to quantify measurable effects of using legal advisory services is made with the use of a random sample and advanced econometric methods (robust MM-estimator). The estimates of parameters of an extended Mincer equation indicate that the appearance of legal problems results in lower earnings per person in a household and the choice of an active reaction to this legal problem results in a substantial reduction of losses.

KEYWORDS:

• Legal advisory services
• Mincer equation
• robust regression

JEL CLASSIFICATION:

• C20
• D31
• K00

Disclosure statement

No potential conflict of interest was reported by the author.