publication . Research . Preprint . 2005

The provision of wage insurance by the firm : evidence from a longitudinal matched employer-employee dataset

Miguel Portela; Ana Rute Cardoso;
Open Access English
  • Published: 01 Jan 2005
  • Publisher: Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
We evaluate the impact of product market uncertainty on workers wages, addressing the questions: To what extent do firms provide insurance to their workforce, nsulating their wages from shocks in product markets? How does the amount of insurance provided vary with firm and worker attributes? We use a longitudinal matched employer-employee dataset of remarkable quality. The empirical strategy is based on Guiso et al. (2005). We first estimate dynamic models of sales and wages to retrieve consistent estimates of shocks to firms’ sales and to workers’ earnings. We are then able to estimate the sensitivity of wages to permanent and transitory shocks to fir...
free text keywords: Wage insurance, Risk sharing, Wage shocks, Product market uncertainty, ddc:330
Funded by
FCT| SFRH/BD/5114/2001
  • Funder: Fundação para a Ciência e a Tecnologia, I.P. (FCT)
  • Project Code: SFRH/BD/5114/2001
  • Funding stream: SFRH | Doutoramento
33 references, page 1 of 3

Abowd, John A. and Thomas Lemieux (1993). The effects of product market competition on collective bargaining agreements: the case of foreign competition in Canada. Quarterly Journal of Economics, 108(4): 983-1014.

Altonji, Joseph G. and Lewis M. Segal (1996). Small-sample bias in GMM estimation of covariance structures. Journal of Business and Economic Statistics, 14(3): 353-367.

Arellano, Manuel and Stephen Bond (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2): 277-297.

Azariadis, Costas (1975). Implicit contracts and underemployment equilibria. Journal of Political Economy, 83(6): 1183-1202. [OpenAIRE]

Baily, Martin Neil (1974). Wages and employment under uncertain demand. Review of Economic Studies, 41(1): 37-50.

Baum, Christopher F., Mark E. Schaffer, and Steven Stillman (2003). Instrumental variables and GMM: Estimation and testing. The Stata Journal, 3(1): 1-31.

Beaudry, Paul and John DiNardo (1991). The effects of implicit contracts on the movement of wages over the business cycle: evidence from micro data. Journal of Political Economy, 99(4): 665-688. [OpenAIRE]

Blanchflower, David G., Andrew J. Oswald and Peter Sanfey (1996). Wages, profits and rent-sharing. Quarterly Journal of Economics, 111(1): 227-251. [OpenAIRE]

Blundell, Richard and Stephen Bond (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1): 115-143.

Cappellari, Lorenzo (1999). Minimum distance estimation of covariance structures. Paper presented at the Conference of the Royal Statistical Society, London, UK, May 17.

Cardoso, Ana Rute (1999). Firm's wage policies and the rise in labor market inequality: the case of Portugal. Industrial and Labor Relations Review, 53(1): 87-102.

Cardoso, Ana Rute and Pedro Portugal (2005). Contractual wages and the wage cushion under different bargaining settings.” Journal of Labor Economics, 23(4): 875-902.

Christofides, Louis N. and Andrew J. Oswald (1992). Real wage determination and rent-sharing in collective bargaining agreements. Quarterly Knight, Frank H. (1921). Risk, Uncertainty and Profit. Boston: Houghton Mifflin.

Meghir, Costas and Luigi Pistaferri (2004). Income variance dynamics and heterogeneity. Econometrica, 72(1): 1-32.

Nickell, Stephen and Sushil Wadhwani (1990). Insider forces and wage determination. Economic Journal, 100(401): 496-509.

33 references, page 1 of 3
Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue
publication . Research . Preprint . 2005

The provision of wage insurance by the firm : evidence from a longitudinal matched employer-employee dataset

Miguel Portela; Ana Rute Cardoso;