Using proprietary data from AngelList Talent, we study how startup job seekers’ search and application behavior changed during the COVID-19 downturn. We find that workers shifted their searches and applications away from less-established startups and toward more-established ones, even within the same individual over time. At the firm level, this shift was not offset by an influx of new job seekers. Less-established startups experienced a relative decline in the quantity and quality of applications, ultimately affecting their hiring. Our findings uncover a flight-to-safety channel in the labor market that may amplify the procyclical nature of entrepreneurial activities.

We exploit the staggered introduction of liability waivers when investors hold stakes in conflicting business opportunities as a shock to venture capital (VC) investment and director networks. After the law changes, we find increases in within-industry VC investment and common directors serving on startup boards. Despite the potential for rent extraction, same-industry startups inside VC portfolios benefit by raising more capital, failing less, and exiting more successfully. VC directors serving on other startup boards are the primary mechanism associated with positive outcomes, consistent with common VC investment facilitating informational exchanges in VC portfolios.

Startups create jobs and power economic growth. That's an article of faith in the United States—but, as The Promise and Peril of Entrepreneurship reveals, our faith may be built on shaky ground. Economists Robert Fairlie, Zachary Kroff, Javier Miranda, and Nikolas Zolas—working with Census Bureau microdata—have developed a new data set, the Comprehensive Startup Panel, that tracks job creation and the survival of every startup in the country. In doing so, they recalibrate our understanding of how startups behave in the US economy. Specifically, their work seeks to answer three critical questions: How many jobs does each entrepreneur create? Do those jobs disappear quickly? And how long do entrepreneurial enterprises survive?

In der Volkswirtschaftslehre wird das Unternehmertum als treibende Kraft hinter dem Prozess kreativer Zerstörung betrachtet, die Innovationen in den Markt einführt, ineffiziente Betriebe verdrängt, und so den Grundstein für das Wachstum der Wirtschaft legt. Ein wesentlicher Bestandteil unternehmerischen Handelns ist die Gründung neuer Firmen (Carree & Thurik, 2003). Die Ursachen und Auswirkungen von Firmengründungen sind daher Gegenstand zahlreicher empirischer Studien (Geroski, 1995; Wagner, 2006). Begutachtet man die Bedeutung dieser Start-ups für die volkswirtschaftliche Entwicklung, so nimmt ihr Beitrag zur Schaffung und Vernichtung von Arbeitsplätzen eine zentrale Rolle ein. Die vorliegende Dissertation legt dar, dass die Relevanz von neu gegründeten Betrieben als Arbeitgeber nicht nur im Hinblick auf die Anzahl der von ihnen geschaffenen Arbeitsplätze beurteilt werden sollte, sondern auch im Lichte der Qualität dieser neuen Jobs. Sollten neue Firmen sich von etablierten Betrieben bezüglich Einstellungsmustern oder Arbeitsbedingungen unterscheiden, könnte dies schwerwiegende Auswirkungen auf die Karriere der dort angestellten Arbeitnehmer haben. Vor diesem Hintergrund liefern die vier Studien dieser Dissertation neue Erkenntnisse zu Einstellungsverhalten, Entlohnung und Beschäftigungsperspektiven in neu gegründeten Betrieben.

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.