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Are women more exposed to firm shocks?
Workers care deeply about job security and pay stability. Given potentially differing risk attitudes between men and women, we examine whether gender differences exist in employee exposure to idiosyncratic firm shocks. Using a comprehensive employer-employee matched dataset, we find significant gender disparities in how firm shocks affect workers: women‘s wages are 25% more elastic and their dismissal rates are 34% more sensitive to firm performance shocks than those of their male colleagues. These gender differences are larger for employees with children, in small firms, and in firms without female executives. Our results uncover a gender gap in firm insurance.
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