Congressional Budget Office
Institutional Affiliation: Congressional Budget Office
NBER Working Papers and Publications
|January 2017||Firm Performance and the Volatility of Worker Earnings|
with Chinhui Juhn, Kristin McCue, Holly Monti: w23102
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.
Published: Chinhui Juhn & Kristin McCue & Holly Monti & Brooks Pierce, 2018. "Firm Performance and the Volatility of Worker Earnings," Journal of Labor Economics, vol 36(S1), pages S99-S131.
|November 2015||Firm Performance and the Volatility of Worker Earnings|
with Chinhui Juhn, Kristin McCue, Holly Monti
in Firms and the Distribution of Income: The Roles of Productivity and Luck, Edward Lazear and Kathryn Shaw, organizers
|October 2010||Recent Trends in Compensation Inequality|
in Labor in the New Economy, Katharine G. Abraham, James R. Spletzer, and Michael Harper, editors
|January 1999||Constructing Interarea Compensation Cost Indexes with Data from Multiple Surveys|
with John W. Ruser, Kimberly D. Zieschang
in International and Interarea Comparisons of Income, Output, and Prices, Alan Heston and Robert E. Lipsey, editors