Family Firms and Labor Demand: Size Matters – But Only the Small Ones are Different

Konferenzbeitrag

This paper analyzes the differences in labor demand between family and non-family firms. The majority of firms in modern economies are still family controlled. In addition, these firms seem to exhibit better employment performance than other companies. Therefore, this study estimates a labor demand model with German establishment panel data. Moreover, a Heck-man correction is introduced to the regressions to avoid selectivity. The results of random effects and fractional panel probit estimations indicate that own-wage and output elasticities are lower in absolute values, thus supporting the assumption that family firms offer higher job security and are more risk averse than other establishments. However, this result does not hold if the investigation is restricted to establishments with 20 or more employees. There is no evidence of different behavior in larger family firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Compensating Wage Differentials ; No. D21-V3

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Firm Behavior: Empirical Analysis ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kölling, Arnd
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/145471
• Last update: 10.03.2025, 11:42 AM CET