Can Technology Startups Hire Talented Early Employees? Ability, Preferences, and Employee First Job Choice

References

• Abowd JM, Kramarz F, Margolis DN (1999) High wage workers and high wage firms. Econometrica 67(2):251–333.Crossref, Google Scholar
• Agarwal R, Ohyama A (2013) Industry or academia, basic or applied? Career choices and earnings trajectories of scientists. Management Sci. 59(4):950–970.Link, Google Scholar
• Agarwal R, Campbell BA, Franco AM, Ganco M (2016) What do I take with me? The mediating effect of spin-out team size and tenure on the founder-firm performance relationship. Acad. Management J. 59(3):1060–1087.Crossref, Google Scholar
• Akerlof GA, Kranton RE (2000) Economics and identity. Quart. J. Econom. 115(3):715–753.Crossref, Google Scholar
• Andersson F, Freedman M, Haltiwanger J, Lane J, Shaw K (2009) Reaching for the stars: Who pays for talent in innovative industries? Econom. J. (London) 119(538):F308–F332.Crossref, Google Scholar
• Aran Y, Murciano-Goroff R (2021) Equity illusions. Working paper.Google Scholar
• Arora A, Gambardella A (1994) Evaluating technological information and utilizing IT-scientific knowledge, technological capability, and external linkages in biotechnology. J. Econom. Behav. Organ. 24(1):91–114.Crossref, Google Scholar
• Åstebro T, Thompson P (2011) Entrepreneurs, jacks of all trades or hobos? Res. Policy 40(5):637–649.Crossref, Google Scholar
• Åstebro T, Chen J, Thompson P (2011) Stars and misfits: Self-employment and labor market frictions. Management Sci. 57(11):1999–2017.Link, Google Scholar
• Azoulay P, Liu CC, Stuart TE (2017) Social influence given (partially) deliberate matching: Career imprints in the creation of academic entrepreneurs. Amer. J. Sociol. 122(4):1223–1271.Crossref, Google Scholar
• Azoulay P, Jones BF, Kim JD, Miranda J (2020) Age and high-growth entrepreneurship. Amer. Econom. Rev. Insights 2(1):65–82.Crossref, Google Scholar
• Babina T, Ma W, Moser C, Ouimet P, Zarutskie R (2019) Pay, employment, and dynamics of young firms. Working paper, Columbia University, New York.Google Scholar
• Baron JN, Burton MD, Hannan MT (1996) The road taken: Origins and evolution of employment systems in emerging companies. Indust. Corporate Change 5(2):239–275.Crossref, Google Scholar
• Becker G (1973) A theory of marriage. J. Political Econom. 81(4):813–846.Crossref, Google Scholar
• Beckman CM, Burton MD (2008) Founding the future: Path dependence in the evolution of top management teams from founding to IPO. Organ. Sci. 19(1):3–24.Link, Google Scholar
• Bengtsson O, Hand JRM (2013) Employee compensation in entrepreneurial companies. J. Econom. Management Strategy 22(2):312–340.Crossref, Google Scholar
• Bhaskarabhatla A, Cabral L, Hegde D, Peeters T (2021) Are inventors or firms the engines of innovation? Management Sci. 67(6):3899–3920.Link, Google Scholar
• Bidwell M, Briscoe F (2010) The dynamics of interorganizational careers. Organ. Sci. 21(5):1034–1053.Link, Google Scholar
• Bidwell M, Won S, Barbulescu R, Mollick E (2015) I used to work at Goldman Sachs! How firms benefit from organizational status in the market for human capital. Strategic Management J. 36(8):1164–1173.Crossref, Google Scholar
• Braguinsky S, Klepper S, Ohyama A (2012) High-tech entrepreneurship. J. Law Econom. 55(4):869–900.Crossref, Google Scholar
• Brown C, Medoff J (1989) The employer size-wage effect. J. Political Econom. 97(5):1027–1059.Crossref, Google Scholar
• Brown C, Medoff JL (2003) Firm age and wages. J. Labor Econom. 21(3):677–697.Crossref, Google Scholar
• Bryan KA, Hoffman M, Sariri A (2022) Information frictions and employee sorting between startups. Working paper.Google Scholar
• Burton MD, Dahl MS, Sorenson O (2018) Do start-ups pay less? Indust. Labor Relations Rev. 71(5):1179–1200.Crossref, Google Scholar
• Burton MD, Sørensen JB, Beckman CM (2002) Coming from good stock: Career histories and new venture formation, chapter 7. Lounsbury M, Ventresca MJ, ed. Social Structure and Organizations Revisited, vol. 19. Research in the Sociology of Organizations (Emerald Group Publishing Limited, Bingley, UK), 229–262.Google Scholar
• Burton MD, Sørensen JB, Dobrev SD (2016) A careers perspective on entrepreneurship. Entrepreneurship Theory Practice 40(2):237–247.Crossref, Google Scholar
• Campbell BA (2013) Earnings effects of entrepreneurial experience: Evidence from the semiconductor industry. Management Sci. 59(2):286–304.Link, Google Scholar
• Campbell BA, Ganco M, Franco AM, Agarwal R (2012) Who leaves, where to, and why worry? Employee mobility, entrepreneurship and effects on source firm performance. Strategic Management J. 33(1):65–87.Crossref, Google Scholar
• Cappelli P (2008) Talent on Demand: Managing Talent in an Age of Uncertainty (Harvard Business Press, Boston).Google Scholar
• Card D (1996) The effect of unions on the structure of wages: A longitudinal, analysis. Econometrica 64(4):957–979.Crossref, Google Scholar
• Cohen WM, Klepper S (1996) A reprise of size and R&D. Econom. J. (London) 106(437):925–951.Google Scholar
• Cohen WM, Sauermann H, Stephan P (2020) Not in the job description: The commercial activities of academic scientists and engineers. Management Sci. 66(9):4108–4117.Link, Google Scholar
• Dahl MS, Klepper S (2015) Whom do new firms hire? Indust. Corporate Change 24(4):819–836.Crossref, Google Scholar
• Eeckhout J (2018) Sorting in the labor market. Annual Rev. Econom. 10:1–29.Crossref, Google Scholar
• Elfenbein DW, Hamilton BH, Zenger TR (2010) The small firm effect and the entrepreneurial spawning of scientists and engineers. Management Sci. 56(4):659–681.Link, Google Scholar
• Evans DS, Leighton LS (1989) Some empirical aspects of entrepreneurship. Amer. Econom. Rev. 79(3):519–535.Google Scholar
• Gambardella A, Khashabi P, Panico C (2020) Managing autonomy in industrial research and development: A project-level investigation. Organ. Sci. 31(1):165–181.Link, Google Scholar
• Gans JS, Stern S (2003) The product market and the market for “ideas”: Commercialization strategies for technology entrepreneurs. Res. Policy 32(2):333–350.Crossref, Google Scholar
• Gompers P, Lerner J, Scharfstein D (2005) Entrepreneurial spawning: Public corporations and the genesis of new ventures, 1986 to 1999. J. Finance 60(2):577–614.Crossref, Google Scholar
• Halaby CN (2003) Where job values come from: Family and schooling background, cognitive ability, and gender. Amer. Sociol. Rev. 68(2):251–278.Crossref, Google Scholar
• Haltiwanger J, Jarmin RS, Miranda J (2013) Who creates jobs? Small vs. large vs. young. Rev. Econom. Statist. 95(2):347–361.Crossref, Google Scholar
• Hamilton BH (2000) Does entrepreneurship pay? An empirical analysis of the returns to self-employment. J. Political Econom. 108(3):604–631.Crossref, Google Scholar
• Hand JRM (2008) Give everyone a prize? Employee stock options in private venture-backed firms. J. Bus. Venturing 23(4):384–404.Crossref, Google Scholar
• Hegde D, Tumlinson J (2021) Information frictions and entrepreneurship. Strategic Management J. 42(3):491–528.Crossref, Google Scholar
• Honoré F, Ganco M (2023) Entrepreneurial teams’ acquisition of talent: Evidence from technology manufacturing industries using a two-sided approach. Strategic Management J. 44(1):141–170.Crossref, Google Scholar
• Hsu DH (2007) Experienced entrepreneurial founders, organizational capital, and venture capital funding. Res. Policy 36(5):722–741.Crossref, Google Scholar
• Hsu DH (2007) Technology-based entrepreneurship. Shane S, ed. The Handbook of Technology and Innovation Management (Wiley-Blackwell, Hoboken, NJ).Google Scholar
• Hsu DH, Roberts EB, Eesley CE (2007) Entrepreneurs from technology-based universities: Evidence from MIT. Res. Policy 36(5):768–788.Crossref, Google Scholar
• Jovanovic B (1979) Job matching and the theory of turnover. J. Political Econom. 87(5):972–991.Crossref, Google Scholar
• Jovanovic B (1994) Firm formation with heterogeneous management and labor skills. Small Bus. Econom. 6(3):185–191.Crossref, Google Scholar
• Kihlstrom R, Laffont J (1979) A general equilibrium entrepreneurial theory of firm formation based on risk aversion. J. Political Econom. 87(4):719–748.Crossref, Google Scholar
• Kim JD (2018) Is there a startup wage premium? Evidence from MIT graduates. Res. Policy 47(3):637–649.Crossref, Google Scholar
• Kim JD (2020) Startup acquisitions as a hiring strategy: Worker choice and turnover. Working paper, Wharton School, Philadelphia, PA.Google Scholar
• Lazear EP (2005) Entreprenreurship. J. Labor Econom. 23(4):649–680.Crossref, Google Scholar
• National Research Council (2010) A Data-Based Assessment of Research-Doctorate Programs in the United States (National Academies Press, Washington, DC).Google Scholar
• National Science Board (2014) Science and Engineering Indicators 2014 (National Science Foundation, Arlington, VA).Google Scholar
• National Science Foundation (2008) Survey of Doctorate Recipients (National Science Foundation, Arlington, VA).Google Scholar
• National Science Foundation (2009) Survey of Earned Doctorates (National Science Foundation, Arlington, VA).Google Scholar
• Neff G (2012) Venture Labor: Work and the Burden of Risk in Innovative Industries (MIT Press, Cambridge, MA).Crossref, Google Scholar
• Ng W, Stuart TE (2022) Acquired employees vs. hired employees: Retained or turned over? Strategic Management J. 43(5):1025–1045.Crossref, Google Scholar
• Oi WY, Idson TL (1999) Firm size and wages. Ashenfelter O, Card D, eds. Handbook of Labor Economics, vol. 3B (Elsevier, Amsterdam), 2165–2214.Google Scholar
• Ouimet P, Zarutskie R (2014) Who works for startups? The relation between firm age, employee age, and growth. J. Financial Econom. 112(3):386–407.Crossref, Google Scholar
• Podsakoff PM, MacKenzie JY, Lee JY (2003) Common methods bias in behavioral research: A critical review and recommended remedies. J. Appl. Psych. 88(5):879–903.Crossref, Google Scholar
• Roach M, Sauermann H (2010) A taste for science? PhD scientists’ academic orientation and self-selection into research careers in industry. Res. Policy 39(3):422–434.Crossref, Google Scholar
• Roach M, Sauermann H (2015) Founder or joiner? The role of preferences and context in shaping different entrepreneurial interests. Management Sci. 61(9):2160–2184.Link, Google Scholar
• Roach M, Sauermann H (2017) The declining interest in an academic career. PLoS One 12(9):e0184130.Crossref, Google Scholar
• Roach M, Skrentny J (2019) Why foreign STEM PhDs are unlikely to work for US technology startups. Proc. Natl. Acad. Sci. USA 116(34):16805–16810.Crossref, Google Scholar
• Roach M, Sauermann H, Skrentny J, eds. (2020) Are Foreign PhDs More Entrepreneurial? Entrepreneurial Characteristics, Preferences and Outcomes of Native and Foreign Science & Engineering PhD Students (The University of Chicago Press, Chicago).Crossref, Google Scholar
• Rosen S (1986) The theory of equalizing differences. Ashenfelter O, Layard R, eds. Handbook of Labor Economics (North-Holland, Amsterdam), 641–692.Crossref, Google Scholar
• Sauermann H (2018) Fire in the belly? Individuals’ motives and innovative performance in startups vs. established firms. Strategic Entrepreneurship J. 12(4):423–454.Crossref, Google Scholar
• Shah SK, Agarwal R, Echambadi R (2019) Jewels in the crown: Exploring the motivations and team building processes of employee entrepreneurs. Strategic Management J. 40(9):1417–1452.Crossref, Google Scholar
• Shane S (2000) Prior knowledge and the discovery of entrepreneurial opportunities. Organ. Sci. 11(4):448–469.Link, Google Scholar
• Sørensen JB (2007) Bureaucracy and entrepreneurship: Workplace effects on entrepreneurial entry. Admin. Sci. Quart. 52(3):387–412.Crossref, Google Scholar
• Sorenson O, Dahl MS, Canales R, Burton MD (2021) Do startup employees earn more in the long run? Organ. Sci. 32(3):587–604.Link, Google Scholar
• Sorkin I (2018) Ranking firms using revealed preference. Quart. J. Econom. 133(3):1331–1393.Crossref, Google Scholar
• Spence M (1973) Job market signaling. Quart. J. Econom. 87(3):355–374.Crossref, Google Scholar
• Stephan P (2012) How Economics Shapes Science (Harvard University Press).Crossref, Google Scholar
• Stern S (2004) Do scientists pay to be scientists? Management Sci. 50(6):835–853.Link, Google Scholar
• Stuart T, Ding W (2006) When do scientists become entrepreneurs? The social structural antecedents of commercial activity in the academic life sciences. Amer. J. Sociol. 112(1):97–144.Crossref, Google Scholar
• Thiel P (2014) Zero to One: Notes on Startups, or How to Build the Future (Crown Business, New York).Google Scholar
• Wasserman N (2012) The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Princeton University Press, Princeton, NJ).Crossref, Google Scholar