Review of Financial Studies Vol. 31 No. 4 2018
Employment and Wage Insurance within Firms: Worldwide Evidence
Abstract
Using a firm-level international panel data set, we study if unemployment insurance offered by the government and by firms are substitutes. We exploit cross-country and time-series variation in public unemployment insurance as a shifter of workers’ demand for insurance within firms, and family versus nonfamily ownership as a shifter of firms’ supply of insurance. Our evidence supports the substitutability hypothesis: employment stability in family firms is greater, and the wage discount larger, in countries and periods with less generous public unemployment insurance, whereas no such substitutability emerges for nonfamily firms.
- Volume
- 31
- Issue
- 4
- Pages
- 1298-1340
- Sources
- bibtex:phds-export.bib