%0 Report
        %A Fackler, Daniel
%A Hölscher, Lisa
%A Schnabel, Claus
%A Weyh, Antje
        %T Does Working at a Start-Up Pay Off?
        %D 2020
        %8 2020 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13033
        %U https://www.iza.org/index.php/publications/dp13033
        %X Using representative linked employer-employee data for Germany, this paper analyzes short- and long-run differences in labor market performance of workers joining startups 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.
        %K wages
%K young firms
%K startups
%K linked employer-employee data