Does working at a start‑up pay off?
- Using representative linked employer-employee data for Germany, this paper analyzes short- and long-run differences in labor market performance of workers joining start-ups instead of incumbent firms. Applying entropy balancing and following individuals over ten years, we find huge and long-lasting drawbacks from entering a start-up in terms of wages, yearly income, and (un)employment. These disadvantages hold for all groups of workers and types of start-ups analyzed. Although our analysis of different subsequent career paths highlights important heterogeneities, it does not reveal any strategy through which workers joining start-ups can catch up with the income of similar workers entering incumbent firms.
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| Author: | Daniel Fackler, Lisa Hölscher, Claus Schnabel, Antje Weyh |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-635590 |
| DOI: | https://doi.org/10.1007/s11187-021-00508-2 |
| ISSN: | 1573-0913 |
| Parent Title (English): | Small business economics |
| Publisher: | Springer Science + Business Media B.V. |
| Place of publication: | Dordrecht [u.a.] |
| Document Type: | Article |
| Language: | English |
| Date of Publication (online): | 2021/09/08 |
| Date of first Publication: | 2021/09/08 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2022/02/14 |
| Tag: | Germany; Linked employer-employee data; Start-ups; Wages; Young firms |
| Volume: | 2021 |
| Page Number: | 23 |
| Note: | Early View: Online Version before inclusion in an issue |
| Note: | Open Access funding enabled and organized by Projekt DEAL. |
| HeBIS-PPN: | 492133735 |
| Institutes: | Angeschlossene und kooperierende Institutionen / Europäische Akademie der Arbeit in der Universität Frankfurt am Main |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Creative Commons - Namensnennung 4.0 |
