Do family firms contribute to job stability? Evidence from the great recession

This article analyzes if, on average, choices made by family businesses regarding job stability in bad times are different to those made by non-family firms. Moreover, we try to elucidate if this potential difference also depends on the family generation in charge. Our analysis relies upon a sample of 55,091 Spanish firms, Spain being one of the countries that suffered the greatest impact of the so-called “Great Recession”. We find that at times of crisis, family businesses do maintain jobs in a higher extent than non-family businesses, and that this effect is especially intense when the first generation is in charge.