Employment in Family Managed Firms: Less But Safe? Analysing Labour Demand of German Family Managed Firms with a Treatment Model for Panel Data

19 Pages Posted: 5 May 2020

See all articles by Arnd Kölling

Arnd Kölling

Berlin School of Economics and Law

Date Written: January 2020

Abstract

This paper analyses the differences in labour demand between family and non‐family managed firms. These firms seem to have better employment performance than non‐family controlled companies. Therefore, this study applies a treatment model for panel data controlling for endogeneities of being a family managed firm or not. The results of the estimations indicate that labour demand is possibly larger because of family members joining the firms as extra employees. Moreover, labour turnover is lower, supporting the assumption that family firms offer some kind of implicit labour contracts. However, in opposite to previous results, it seems that only small family managed firms show different employment behaviour.

Keywords: family firms, firm size, labour demand, panel data, treatment model

JEL Classification: C21, C23, D22, G32, J23

Suggested Citation

Kölling, Arnd, Employment in Family Managed Firms: Less But Safe? Analysing Labour Demand of German Family Managed Firms with a Treatment Model for Panel Data (January 2020). Bulletin of Economic Research, Vol. 72, Issue 1, pp. 14-32, 2020, Available at SSRN: https://ssrn.com/abstract=3591304 or http://dx.doi.org/10.1111/boer.12203

Arnd Kölling (Contact Author)

Berlin School of Economics and Law ( email )

Alt-Friedrichsfelde 60
Berlin, D-10315
Germany

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