Employment stability in newly founded firms: a matching approach using linked employer–employee data from Germany

Employment stability in newly founded firms: a matching approach using linked employer–employee... Using a linked employer–employee dataset and taking the perspective of individuals rather than firms, this paper analyzes some effects of joining startups. We show that entrants in new firms differ from those joining incumbent firms, and we use a matching approach to compare a group of employees joining new firms in 1995/1996 with a control group entering incumbent firms. Our results indicate that individuals’ employment stability was higher in incumbent than in newly founded firms, while their risk of becoming unemployed was lower. In particular in eastern Germany, joining firms that were older than 6 years improved individuals’ employment prospects. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Employment stability in newly founded firms: a matching approach using linked employer–employee data from Germany

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Publisher
Springer US
Copyright
Copyright © 2009 by Springer Science+Business Media, LLC.
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-009-9188-4
Publisher site
See Article on Publisher Site

Abstract

Using a linked employer–employee dataset and taking the perspective of individuals rather than firms, this paper analyzes some effects of joining startups. We show that entrants in new firms differ from those joining incumbent firms, and we use a matching approach to compare a group of employees joining new firms in 1995/1996 with a control group entering incumbent firms. Our results indicate that individuals’ employment stability was higher in incumbent than in newly founded firms, while their risk of becoming unemployed was lower. In particular in eastern Germany, joining firms that were older than 6 years improved individuals’ employment prospects.

Journal

Small Business EconomicsSpringer Journals

Published: Mar 26, 2009

References

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