Start-ups, job creation, and founder characteristics

J. David Brown, John Earle, Mee Jung Kim and Kyung Min Lee

Industrial and Corporate Change, 2019, vol. 28, issue 6, 1637-1672

Abstract: Analyzing data on all US employers in a cohort of entering firms, we document a highly skewed size distribution, such that the largest 5% account for over half of cohort employment at firm birth and more than two-thirds at firm age 7. Analyzing linked survey-administrative data, we find that female, African–American, and younger founders are initially less likely to start large firms. The gender gap persists through firm age 7, while racial and age gaps do not. Education is positively associated with start-up size, except for graduate degrees. Prior entrepreneurship and founding team size are positively associated, but team diversity is not. Specifications with capital and industry controls illuminate roles of financial constraints and sectoral choice.

JEL-codes: D22 J24 L25 L26 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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