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Working in family firms: paid less but more secure? Evidence from French matched employer-employee data

Author

Listed:
  • Andrea Bassanini

    ()

  • Thomas Breda
  • Eve Caroli

    ()

  • Antoine Rebérioux

    () (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

The authors study compensation packages in family- and non-family-owned firms. Using French matched employer-employee data, they first find that family firms pay on average lower wages. Part of this wage gap is due to low-wage workers sorting into family firms and high-wage workers sorting into non-family-owned firms; however, they also find evidence that company wage policies differ according to ownership status, so that the same worker is paid differently under family and non-family firm ownership. In addition, family firms are characterized by lower job insecurity, as measured by lower dismissal rates. Family firms appear to rely less on dismissals, and more on hiring reductions, than do non-family-owned firms when they downsize. Compensating wage differentials account for a substantial part of the inverse relationship between the family/non-family gaps in wages and job security.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Andrea Bassanini & Thomas Breda & Eve Caroli & Antoine Rebérioux, 2013. "Working in family firms: paid less but more secure? Evidence from French matched employer-employee data," Post-Print hal-01385856, HAL.
  • Handle: RePEc:hal:journl:hal-01385856
    Note: View the original document on HAL open archive server: https://hal-univ-paris10.archives-ouvertes.fr/hal-01385856
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    Cited by:

    1. Andrew Ellul & Marco Pagano & Fabiano Schivardi, 2014. "Employment and Wage Insurance within Firms - Worldwide Evidence," EIEF Working Papers Series 1402, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2017.
    2. repec:eee:jbrese:v:84:y:2018:i:c:p:337-348 is not listed on IDEAS
    3. Bjuggren, Carl Magnus, 2015. "Sensitivity to shocks and implicit employment protection in family firms," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 18-31.
    4. repec:krk:eberjl:v:5:y:2017:i:2:p:159-176 is not listed on IDEAS
    5. repec:iza:izawol:journl:y:2018:n:434 is not listed on IDEAS
    6. Block, Jörn H. & Fisch, Christian O. & Lau, James & Obschonka, Martin & Presse, André, 2016. "Who prefers working in family firms? An exploratory study of individuals’ organizational preferences across 40 countries," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 65-74.
    7. repec:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9884-4 is not listed on IDEAS
    8. repec:krk:eberjl:v:5:y:2017:i:2:p:177-193 is not listed on IDEAS
    9. repec:kap:jbuset:v:146:y:2017:i:3:d:10.1007_s10551-015-2937-1 is not listed on IDEAS

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