Bigsten, Arne; Collier, Paul; Dercon, Stefan; … - In: The World Bank Economic Review 17 (2003) 3, pp. 349-365
insurance to employers: when firms are hit by temporary shocks, the effect on profits is cushioned by risk sharing with workers … 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 …