Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216345 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13033
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using representative linked employer-employee data for Germany, this paper analyzes short- and long-run differences in labor market performance of workers joining startups 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

Files in This Item:
File
Size
1.68 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.