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Keywords:Startups 

Working Paper
Pay, Employment, and Dynamics of Young Firms

Why do young firms pay less? Using confidential microdata from the US Census Bureau, we find lower earnings among workers at young firms. However, we argue that such measurement is likely subject to worker and firm selection. Exploiting the two-sided panel nature of the data to control for relevant dimensions of worker and firm heterogeneity, we uncover a positive and significant young-firm pay premium. Furthermore, we show that worker selection at firm birth is related to future firm dynamics, including survival and growth. We tie our empirical findings to a simple model of pay, employment, ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 21

Working Paper
The Role of Startups for Local Labor Markets

We investigate the dynamic response of local U.S. labor markets to increased job creation by new firms and compare the effects to overall labor demand shocks. To account for both dynamic and spatial dependence we develop a spatial panel VAR that builds on recent advances in the VAR literature to identify structural shocks using external instruments. We find that startup shocks have a small but persistent effect on local employment through population growth. Population growth, in turn, is largely driven by immigration. We also investigate how the responses differ by local characteristics such ...
Working Papers , Paper 17-31

Blog
Startups Account for Smaller Share of U.S. Jobs

Since 1994, startup firms have seen their share of U.S. employment shrink.
On the Economy

Journal Article
Trends in Startups’ Share of Jobs in the U.S. and Eighth District

Startups have been representing a smaller share of all jobs within the U.S. and Eighth District in recent years.
The Regional Economist , Volume 28 , Issue 1

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