Submitted by Rafael Carlquist Rabelo de Araujo (carlquist.rafael@gmail.com) on 2018-04-27T04:02:00Z No. of bitstreams: 1 versao_final.pdf: 1080487 bytes, checksum: 9f90a3b330555a8cb538254caf1daa0b (MD5) / Approved for entry into archive by GILSON ROCHA MIRANDA (gilson.miranda@fgv.br) on 2018-05-08T14:07:53Z (GMT) No. of bitstreams: 1 versao_final.pdf: 1080487 bytes, checksum: 9f90a3b330555a8cb538254caf1daa0b (MD5) / Made available in DSpace on 2018-05-08T18:53:12Z (GMT). No. of bitstreams: 1 versao_final.pdf: 1080487 bytes, checksum: 9f90a3b330555a8cb538254caf1daa0b (MD5) Previous issue date: 2018-03-28 / In 2005, the Brazilian bankruptcy law was changed to improve secured creditor’s protection. I explore the bankruptcy reform together with heterogeneity of the judicial efficiency, at the municipal level, and heterogeneity of the firm’s asset tangibility, at the sectoral level, to study possible effects on labour reallocation. By applying an instrumental variable approach, I find that firms operating on municipalities with a more efficient judicial system observed a higher increase in their labour force after the reform, and that this effect was stronger on firms operating in sectors which use more tangible assets.