I use variation in US consumer bankruptcy laws to study the impact of employees' financial well-being on corporate performance. I find that better employees' financial well-being leads to higher firm profitability and labor productivity. The cross-sectional analysis finds more pronounced effects...

Firms' financial obligations affect labor negotiation dynamics, pressuring firms and workers to reach an agreement and avoid costly walkouts. Using data on negotiation events, union elections, and policy changes, we find that firms' debt maturity: (i) increases when approaching negotiations and...