Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287392 
Year of Publication: 
2021
Citation: 
[Journal:] Small Business Economics [ISSN:] 1573-0913 [Volume:] 58 [Issue:] 4 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 2211-2233
Publisher: 
Springer US, New York, NY
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: 
Start-ups
Young firms
Wages
Linked employer-employee data
Germany
JEL: 
J31
J63
L26
M51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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