Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/214742
Authors: 
Fackler, Daniel
Hölscher, Lisa
Schnabel, Claus
Weyh, Antje
Year of Publication: 
2020
Series/Report no.: 
FAU Discussion Papers in Economics No. 03/2020
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.
Subjects: 
startups
young firms
wages
linked employer-employee data
JEL: 
J31
J63
L26
M51
Document Type: 
Working Paper

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