Brixy, Udo; Kohaut, Susanne; Schnabel, Claus - In: Small Business Economics 29 (2007) 1, pp. 161-171
Using a linked employer–employee data set for Germany, this paper analyses wage setting in a cohort of newly founded … and other establishments from 1997 to 2001. While theory provides alternative explanations for higher or lower wages in … newly founded firms, we show empirically that start-ups tend to pay lower wages, ceteris paribus. On average, wages in newly …