Who works for startups? The relation between firm age, employee age, and growth

Paige Ouimet and Rebecca Zarutskie

Journal of Financial Economics, 2014, vol. 112, issue 3, 386-407

Abstract: Young firms disproportionately employ and hire young workers. On average, young employees in young firms earn higher wages than young employees in older firms. Young employees disproportionately join young firms with greater innovation potential and that exhibit higher growth, conditional on survival. We argue that the skills, risk tolerance, and joint dynamics of young workers contribute to their disproportionate share of employment in young firms. Moreover, an increase in the supply of young workers is positively related to new firm creation in high-tech industries, supporting a causal link between the supply of young workers and new firm creation.

Keywords: Firm age; Employee age; Entrepreneurship; Wages; Venture capital (search for similar items in EconPapers)
JEL-codes: G30 J31 L26 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (123)

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Related works:
Working Paper: Who works for startups? The relation between firm age, employee age, and growth (2013)
Working Paper: Who Works for Startups? The Relation between Firm Age, Employee Age, and Growth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:112:y:2014:i:3:p:386-407

DOI: 10.1016/j.jfineco.2014.03.003

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