"Using a linked employer-employee data set for Germany, this paper analyses wage setting in a cohort of newly founded and other establishments from 1997 to 2001. While theory provides alternative explanations for higher or lower wages in newly founded firms, we show empirically that start-ups tend to pay lower wages, ceteris paribus. On average, wages in newly founded establishments are 8 percent lower than in similar incumbent firms. This negative wage differential is substantially smaller in eastern than in western Germany. The wage differential is shown to decline over time as the newly founded firms become more mature." (author's abstract, IAB-Doku) ((en))
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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number
200404.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Charles Brown & James L. Medoff, 2003.
"Firm Age and Wages,"
Journal of Labor Economics,
University of Chicago Press, vol. 21(3), pages 677-698, July.
[Downloadable!]
Other versions:
Charles Brown & James L. Medoff, 2001.
"Firm Age and Wages,"
NBER Working Papers
8552, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Blien, Uwe & Kirchhof, Kai & Ludewig, Oliver, 2006.
"Agglomeration effects on labour demand,"
IAB Discussion Paper
200628, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
[Downloadable!]
Nikolaj Malchow-Møller & Bertel Schjerning & Anders Sørensen, 2009.
"Entrepreneurship, Job Creation, and Wage Growth,"
CAM Working Papers
2009-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
[Downloadable!]
Other versions:
Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007.
"Vergleich von deutschen Arbeitsmarktregionen,"
IAB Discussion Paper
200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
[Downloadable!]