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Startup Employment and Career Trajectories

Author

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  • Gonzalo García-Trujillo
  • Nathalie González-Prieto
  • Alvaro Silva

Abstract

We study how working for a startup affects labor market outcomes using Chilean employer-employee data. Findings reveal that joining a startup results in a 6.7% reduction in earnings over the next five years, with half attributed to lower average earnings and a half to spending more time out of formal employment. Workers at startups also exhibit a lower probability of being employed and experiencing job-to-job transitions. They also hold fewer jobs. These effects are persistent but vary across worker and firm characteristics. In particular, startups that survive have a smaller earnings penalty, while top-performing startups offer an earnings premium.

Suggested Citation

  • Gonzalo García-Trujillo & Nathalie González-Prieto & Alvaro Silva, 2023. "Startup Employment and Career Trajectories," Working Papers Central Bank of Chile 978, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:978
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    References listed on IDEAS

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