Bigsten, Arne; Collier, Paul; Dercon, Stefan; … - 2003 - Rev.
-sections between wages and profitability. The alternative explanation of risk sharing between workers and employers has not been tested …. Using a unique panel data set for four African countries we find strong evidence of risk sharing. Workers in effect offer … insurance to employers: when firms are hit by temporary shocks the effect on profits is cushioned by risk sharing with workers …
