Old Wine in New Bottles: The Effect of Previous Co-Worker Experience on the Survival of New Firms

Bram Timmermans

No 10-17, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: The aim of the paper is to investigate the effect of previous co-worker experience on the survival of new established firms. For the empirical analysis I use the Danish Integrated Database of Labor Market Research (IDA). This longitudinal employer-employee database allows me to identify co-worker experience among all members of the firm. In addition, I will make a distinction between ordinary start-ups and entrepreneurial spin-offs. The results show that previous co-worker experience has a positive effect on new firm survival. This effect appears to be valid predominantly for ordinary start-ups then for spin-offs.

Date: 2010
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