@TechReport{iza:izadps:dp17655,
            	author={Kim, Seula},
            	title={Workers' Job Prospects and Young Firm Dynamics},
            	year={2025},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17655},
            	url={https://www.iza.org/publications/dp17655},
	abstract={This paper investigates how worker beliefs and job prospects impact the wages and growth of young firms, as well as the aggregate economy. Building a heterogeneous-firm directed search model where workers gradually learn about firm types, I find that learning generates endogenous wage differentials for young firms. High-performing young firms must pay higher wages than equally high-performing old firms, while low-performing young firms offer lower wages than equally low-performing old firms. Reduced uncertainty or labor market frictions lower the wage differentials, thereby enhancing young firm dynamics and aggregate productivity. The results are consistent with U.S. administrative employee-employer matched data.},
	keywords={Wage Differentials;Firm Dynamics;Learning;Search Frictions;Uncertainty},
            }