Employment stability of entrants in newly founded firms: a matching approach using linked employer-employee data from Germany

Claus Schnabel, Susanne Kohaut and Udo Brixy ()

No 56, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

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: employment; unemployment; newly founded firma; linked employer-employee data; Germany (search for similar items in EconPapers)
JEL-codes: J63 J64 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Employment stability of entrants in newly founded firms: a matching approach using linked employer-employee data from Germany (2008)
Working Paper: Employment Stability of Entrants in Newly Founded Firms: A Matching Approach Using Linked Employer-Employee Data from Germany (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:56

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