Using a country-industry panel dataset (EUKLEMS) we uncover a robust empirical regularity, namely that high-risk … productivity and a risky technology with productivity subject to sizeable shocks. Strict EPL makes the risky technology relatively … less attractive because it is more costly to shed workers upon receiving a low productivity draw. We calibrate the model …

The risk of default that business firms face is very significant and differs widely across countries. This paper … explores the links between countries' business conditions and international trade embedment and the default risk at the country … default risk of firms which operate in these environments. The predictions are in accord with readily available data. -- firm …

This paper investigates the impact of wage dispersion on firm productivity in different working environments. More …-shaped relationship between (conditional) wage dispersion and firm productivity. This result suggests that up to (beyond) a certain level … associate higher uncertainty with more unfair environments. -- Wage dispersion ; labour productivity ; working environments …

activities within the household. However, this prediction may not hold in the presence of risk. Using data on farm plots and non …-farm enterprises in Malawi, we examine the impact of risk on the allocation decisions of agricultural households as they allocate labor …

How does small-firm employment respond to exogenous labor productivity risk? We find that this depends on the … capitalization of firms' local banks. The evidence comes from firms offering (quasi-) fixed employment to workers whose productivity … depends on the weather. Weather risk reduces this employment, and the effect is stronger in regions where the regional banks …