Employment Stability of Entrants in Newly Founded Firms: A Matching Approach Using Linked Employer-Employee Data from Germany

29 Pages Posted: 3 Nov 2008

See all articles by Claus Schnabel

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Susanne Kohaut

affiliation not provided to SSRN

Udo Brixy

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Abstract

Using a linked employer-employee dataset and taking the perspective of individuals rather than firms, this paper analyzes some effects of joining start-ups. We show that entrants in new firms differ from those joining incumbent firms, and we use a matching approach to compare a group of employees joining new firms in 1995/96 with a control group entering incumbent firms. Our results indicate that individuals' employment stability was higher in incumbent than in newly founded firms while their risk of becoming unemployed was lower. In particular in eastern Germany, joining firms that were older than six years was the best strategy.

Keywords: linked employer-employee data, newly founded firms, unemployment, employment, Germany

JEL Classification: J63, J64

Suggested Citation

Schnabel, Claus and Kohaut, Susanne and Brixy, Udo, Employment Stability of Entrants in Newly Founded Firms: A Matching Approach Using Linked Employer-Employee Data from Germany. IZA Discussion Paper No. 3353, Available at SSRN: https://ssrn.com/abstract=1294525 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Claus Schnabel (Contact Author)

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
Lange Gasse 20
D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Susanne Kohaut

affiliation not provided to SSRN

No Address Available

Udo Brixy

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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