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Working in Family Firms: Paid Less But More Secure? Evidence from French Matched Employer-Employee Data

Listed author(s):
  • Andrea Bassanini

    ()

    (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Breda

    (CEP - Centre for Economic Performance - LSE)

  • Eve Caroli

    ()

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, Legos - Laboratoire d'Economie et de Gestion des Organisations de Santé - Université Paris-Dauphine)

  • Antoine Rebérioux

    ()

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

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.

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Paper provided by HAL in its series PSE - Labex "OSE-Ouvrir la Science Economique" with number halshs-00832786.

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Date of creation: Apr 2013
Publication status: Published in Industrial and Labor Relations Review, Industrial and Labor Relations Review, 2013, 66 (2), pp.433-466
Handle: RePEc:hal:pseose:halshs-00832786
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00832786
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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