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Who works for startups? The relation between firm age, employee age, and growth

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  • Ouimet, Paige
  • Zarutskie, Rebecca
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    Abstract

    Young firms disproportionately employ and hire young workers. On average, young employees in young firms earn higher wages than young employees in older firms. Young employees disproportionately join young firms with greater innovation potential and that exhibit higher growth, conditional on survival. We argue that the skills, risk tolerance, and joint dynamics of young workers contribute to their disproportionate share of employment in young firms. Moreover, an increase in the supply of young workers is positively related to new firm creation in high-tech industries, supporting a causal link between the supply of young workers and new firm creation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Financial Economics.

    Volume (Year): 112 (2014)
    Issue (Month): 3 ()
    Pages: 386-407

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    Handle: RePEc:eee:jfinec:v:112:y:2014:i:3:p:386-407

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    Web page: http://www.elsevier.com/locate/inca/505576

    Related research

    Keywords: Firm age; Employee age; Entrepreneurship; Wages; Venture capital;

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