Employment Stability of Entrants in Newly Founded Firms: A Matching Approach Using Linked Employer-Employee Data from Germany

Claus Schnabel (), Susanne Kohaut () and Udo Brixy ()
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Susanne Kohaut: IAB, Nürnberg

No 3353, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Using a linked employer-employee dataset and taking the perspective of individuals rather than firms, this paper analyzes some effects of joining start-ups. We show that entrants in new firms differ from those joining incumbent firms, and we use a matching approach to compare a group of employees joining new firms in 1995/96 with a control group entering incumbent firms. Our results indicate that individuals’ employment stability was higher in incumbent than in newly founded firms while their risk of becoming unemployed was lower. In particular in eastern Germany, joining firms that were older than six years was the best strategy.

Keywords: linked employer-employee data; newly founded firms; unemployment; employment; Germany (search for similar items in EconPapers)
JEL-codes: J63 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent and nep-lab
Date: 2008-02
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Related works:
Working Paper: Employment stability of entrants in newly founded firms: a matching approach using linked employer-employee data from Germany (2008)
Working Paper: Employment stability of entrants in newly founded firms: a matching approach using linked employer-employee data from Germany (2008)
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