Does working at a start-up pay off?

Daniel Fackler (), Lisa Hölscher (), Claus Schnabel and Antje Weyh ()
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Daniel Fackler: European Academy of Labour, University of Frankfurt
Lisa Hölscher: Halle Institute for Economic Research (IWH)
Antje Weyh: Institute for Employment Research (IAB) Sachsen

Small Business Economics, 2022, vol. 58, issue 4, No 22, 2233 pages

Abstract: 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.

Keywords: Start-ups; Young firms; Wages; Linked employer-employee data; Germany; J31; J63; L26; M51 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Does Working at a Start-Up Pay Off? (2020)
Working Paper: Does working at a start-up pay off? (2020)
Working Paper: Does working at a start-up pay off? (2020)
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DOI: 10.1007/s11187-021-00508-2

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