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Author Schnabel, Claus ♦ Kohaut, Susanne ♦ Brixy, Udo
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Employment ♦ unemployment ♦ newly founded firms ♦ linked employer-employee data ♦ Germany ♦ Arbeitsmobilität ♦ Unternehmensgründung ♦ Arbeitsplatzsicherung ♦ Deutschland ♦ Neue Bundesländer ♦ Labor Turnover; Vacancies; Layoffs
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.
Part of series IZA Discussion Papers x3353
Learning Resource Type Article
Publisher Date 2008-01-01
Publisher Place Bonn
Rights Holder