Does working at a start-up pay off?

Fackler D, Hölscher L, Schnabel C, Weyh A (2021)

Publication Type: Journal article

Publication year: 2021

Journal

Small Business Economics Springer Verlag (Germany)

DOI: 10.1007/s11187-021-00508-2

Abstract

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.

Authors with CRIS profile

Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Related research project(s)

Einstellungsverhalten, Beschäftigungsperspektiven und Entlohnung in neu gegründeten Betrieben Jan. 1, 2017 - Jan. 1, 2020

Involved external institutions

Leibniz-Institut für Wirtschaftsforschung Halle (IWH) DE Germany (DE) Goethe-Universität Frankfurt am Main DE Germany (DE) Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Fackler, D., Hölscher, L., Schnabel, C., & Weyh, A. (2021). Does working at a start-up pay off? Small Business Economics. https://doi.org/10.1007/s11187-021-00508-2

MLA:

Fackler, Daniel, et al. "Does working at a start-up pay off?" Small Business Economics (2021).

BibTeX: Download