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| Author: | Brixy, U. Kohaut, S. Schnabel, C. |
| Title: | Do newly founded firms pay lower wages? First evidence from Germany |
| Journal: | Small business economics
2007 : JUN/AUG, VOL. 29:1-2, p. 161-171 |
| Index terms: | company formation Germany new enterprise pay |
| Language: | eng |
| Abstract: | This article uses a linked employer-employee data set for Germany to examine and compare wage setting in a cohort of newly founded and other establisment from 1997 to 2001. The empirical study shows that, ceteris paribus, newly founded establisments tend to pay lower wages. On average, wages are 8% lower in start-ups than in comparable incumbent companies, but the margin decreases over time when the new companies become more mature. |
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