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Employment and Wage Insurance within Firms: Worldwide Evidence

Author

Listed:
  • Andrew Ellul

    (Indiana University)

  • Marco Pagano

    () (Università di Napoli Federico II CSEF, EEIF, CEPR and ECGI)

  • Fabiano Schivardi

    (LUISS, EIEF and CEPR)

Abstract

Using a firm-level international panel dataset, 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 vs. non-family 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, while no such substitutability emerges for non-family firms.

Suggested Citation

  • Andrew Ellul & Marco Pagano & Fabiano Schivardi, 2014. "Employment and Wage Insurance within Firms: Worldwide Evidence," CSEF Working Papers 369, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 16 Sep 2017.
  • Handle: RePEc:sef:csefwp:369
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    References listed on IDEAS

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    Cited by:

    1. repec:iza:izawol:journl:y:2018:n:434 is not listed on IDEAS
    2. Giacinta Cestone & Chiara Fumagalli & Francis Kramaz & Giovanni Pica, 2015. "Insurance Between Firms: The Role of Internal Labor Markets," CSEF Working Papers 386, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 15 Feb 2017.
    3. Bach, Laurent & Serrano-Velarde, Nicolas, 2015. "CEO identity and labor contracts: Evidence from CEO transitions," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 227-242.
    4. repec:eee:jfinec:v:125:y:2017:i:2:p:369-388 is not listed on IDEAS
    5. repec:ucp:jlabec:doi:10.1086/694167 is not listed on IDEAS
    6. repec:eee:jfinec:v:127:y:2018:i:2:p:303-324 is not listed on IDEAS
    7. repec:eee:corfin:v:46:y:2017:i:c:p:461-476 is not listed on IDEAS

    More about this item

    Keywords

    risk-sharing; insurance; social security; unemployment; wages; family firms.;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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