Does Working at a Start-Up Pay Off?
IZA Institute of Labor Economics - Discussion Paper Series,
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.
IWH-Insolvenzforschung Die IWH-Insolvenzforschungsstelle bündelt die...
Members & Research Doctoral Students Afroza Alam ; Doctoral thesis project: tba Annika Backes ; Doctoral thesis project: tba Tommaso B ...
IWH-Insolvenztrend: Insolvenzwelle bleibt bislang aus Deutlich schneller als die amtliche Statistik liefert das IWH...
Do Startups Provide Employment Opportunities for Disadvantaged Workers?
IZA Discussion Paper Series,
This paper analyzes whether startups offer job opportunities to workers potentially facing labor market problems. It compares the hiring patterns of startups and incumbents in the period 2003 to 2014 using administrative linked employer-employee data for Germany that allow to take the complete employment biographies of newly hired workers into account. The results indicate that young plants are more likely than incumbents to hire older and foreign applicants as well as workers who have instable employment biographies, come from unemployment or outside the labor force, or were affected by a plant closure. However, an analysis of entry wages reveals that disadvantageous worker characteristics come along with higher wage penalties in startups than in incumbents. Therefore, even if startups provide employment opportunities for certain groups of disadvantaged workers, the quality of these jobs in terms of initial remuneration seems to be low.
Losing Work, Moving Away? Regional Mobility After Job Loss
LABOUR: Review of Labour Economics and Industrial Relations,
Using German survey data, we investigate the relationship between involuntary job loss and regional mobility. Our results show that job loss has a strong positive effect on the propensity to relocate. We also analyse whether displaced workers who relocate to a different region after job loss are better able to catch up with non-displaced workers in terms of labour market performance than those staying in the same region. Our findings do not support this conjecture as we find substantial long-lasting earnings losses for movers and stayers and even slightly but not significantly higher losses for movers.
Identifying Industrial Clusters from a Multidimensional Perspective: Methodical Aspects with an Application to Germany
Papers in Regional Science,
If regional development agencies assume the cluster concept to be an adequate framework to promote regional growth and
competitiveness, it is necessary to identify industrial clusters in a comprehensive manner. Previous studies used a diversity of methods to identify the predominant concentrations of economic activity in one industrial sector in a region. This paper is based on a multidimensional approach developed by Titze et al. With the help of the combination of concentration measures and input–output methods they were able to identify horizontal and vertical dimensions of industrial clusters. This paper aims to reﬁne this approach by using a superior measure of spatial concentration and by integrating information about spatial interdependence of industrial cluster structures to contribute to a more adequate framework for industrial cluster identiﬁcation.