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New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents

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Abstract

The present contribution addresses the question whether and how qualitative aspects of employment---like weekly hours of work, wages or qualification---differ between new and established firms. Although a wide strand of literature in entrepreneurship research analyses the employment effects of start-ups vs. incumbent firms, our knowledge about differences in these qualitative aspects of employment is rather poor. Labour market research, on the other hand, has been thoroughly accounting for the consequences of technological and organisational change on the characteristics and turnover of jobs, but it rarely has been attempting to consider the relevance of firm entry. Based on the Establishment History Panel, a plant-level dataset constructed from employment information and comprising nearly the entire German economy, we find significant differences between new and incumbent firms with respect to employment quality. Surprisingly, the difference regarding the share of high-qualified labour is---though highly significant---not as high as commonly expected.

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  • Andreas Koch & Jochen Spaeth, 2009. "New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents," IAW Discussion Papers 50, Institut für Angewandte Wirtschaftsforschung (IAW).
  • Handle: RePEc:iaw:iawdip:50
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    Cited by:

    1. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, pages 733-755.

    More about this item

    Keywords

    Start-ups; Employment; Quality of Employment; Germany; Entrepreneurship; Qualification; Wages; Part-Time; Marginal Employment;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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