Employment and Wage Insurance within Firms: Worldwide Evidence

Andrew Ellul, Marco Pagano and Fabiano Schivardi
Additional contact information
Andrew Ellul: Indiana University
Fabiano Schivardi: Bocconi University

No 1506, Working Papers CELEG from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: We investigate the determinants of firms’ implicit employment and wage insurance to employees, using a difference-in-difference approach: we rely on differences between family and non-family firms to identify the supply of insurance, and exploit variation in unemployment insurance programs across and within countries to gauge workers’ demand for insurance. Using a firm-level panel from 41 countries, we find that family firms provide more stable employment than nonfamily ones, and in exchange they obtain both greater wage flexibility and lower labor cost: on average, their real wages are 5 percent lower, controlling for country, industry and time effects. The additional employment security provided by family firms is greater, and the wage discount larger, the less generous is public unemployment insurance: private and public provision of employment insurance appear to be substitutes.

Keywords: risk-sharing; insurance; social security; unemployment; wages; family firms. (search for similar items in EconPapers)
JEL-codes: G31 G32 G38 H25 H26 M40 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-ias and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://static.luiss.it/RePEc/pdf/celegw/1506.pdf (application/pdf)

Related works:
Journal Article: Employment and Wage Insurance within Firms: Worldwide Evidence (2018)
Working Paper: Employment and Wage Insurance within Firms - Worldwide Evidence (2017)
Working Paper: Employment and Wage Insurance within Firms: Worldwide Evidence (2017)
Working Paper: Employment and Wage Insurance within Firms: Worldwide Evidence (2015)
Working Paper: Employment and wage insurance within firms: Worldwide evidence (2015)
Working Paper: Employment and wage insurance within firms: worldwide evidence (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lui:celegw:1506

Access Statistics for this paper

More papers in Working Papers CELEG from Dipartimento di Economia e Finanza, LUISS Guido Carli Contact information at EDIRC.
Bibliographic data for series maintained by Paolo Giordani ( this e-mail address is bad, please contact ).