New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents

Andreas Koch and Jochen Spaeth ()
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Jochen Spaeth: https://www.iaw.edu/ueberuns/team/direktoren-geschaeftsfuehrung/jochen-spaeth.html

No 50, IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW)

Abstract: The present contribution addresses the question whether and how qualitative aspects of employment---like weekly hours of work, wages or qualification---differ between new and established firms. Although a wide strand of literature in entrepreneurship research analyses the employment effects of start-ups vs. incumbent firms, our knowledge about differences in these qualitative aspects of employment is rather poor. Labour market research, on the other hand, has been thoroughly accounting for the consequences of technological and organisational change on the characteristics and turnover of jobs, but it rarely has been attempting to consider the relevance of firm entry. Based on the Establishment History Panel, a plant-level dataset constructed from employment information and comprising nearly the entire German economy, we find significant differences between new and incumbent firms with respect to employment quality. Surprisingly, the difference regarding the share of high-qualified labour is---though highly significant---not as high as commonly expected.

Keywords: Start-ups; Employment; Quality of Employment; Germany; Entrepreneurship; Qualification; Wages; Part-Time; Marginal Employment (search for similar items in EconPapers)
JEL-codes: J24 J31 J82 M13 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009-07
New Economics Papers: this item is included in nep-ent, nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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