Firm Performance and the Volatility of Worker Earnings /
Juhn, Chinhui.
Firm Performance and the Volatility of Worker Earnings / Chinhui Juhn, Kristin McCue, Holly Monti, Brooks Pierce. - Cambridge, Mass. National Bureau of Economic Research 2017. - 1 online resource: illustrations (black and white); - NBER working paper series no. w23102 . - Working Paper Series (National Bureau of Economic Research) no. w23102. .
January 2017.
Using linked employer-employee data for the U.S., we examine whether shocks to firm revenues are transmitted to the earnings of continuing employees. While full insurance is rejected, the elasticity of worker earnings with respect to persistent shocks in firm revenues is small and consistent with the notion that firms insulate workers from idiosyncratic shocks. Exploring heterogeneity of effects, we find the largest elasticity in professional services, among employees in the top 5% of their employers' earnings distribution, suggesting that in certain jobs performance pay may be a countervailing force to wage insurance.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Firm Performance and the Volatility of Worker Earnings / Chinhui Juhn, Kristin McCue, Holly Monti, Brooks Pierce. - Cambridge, Mass. National Bureau of Economic Research 2017. - 1 online resource: illustrations (black and white); - NBER working paper series no. w23102 . - Working Paper Series (National Bureau of Economic Research) no. w23102. .
January 2017.
Using linked employer-employee data for the U.S., we examine whether shocks to firm revenues are transmitted to the earnings of continuing employees. While full insurance is rejected, the elasticity of worker earnings with respect to persistent shocks in firm revenues is small and consistent with the notion that firms insulate workers from idiosyncratic shocks. Exploring heterogeneity of effects, we find the largest elasticity in professional services, among employees in the top 5% of their employers' earnings distribution, suggesting that in certain jobs performance pay may be a countervailing force to wage insurance.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.