Search

New firms as employers: The wage penalty for voluntary and involuntary job switchers

PublicationArticle (with peer review)
Företagandets villkor, Gulzat Zhetibaeva Elvung, Kristina Nyström, Nya företag, Utbildningspremium

Abstract

According to previous research, new firms pay lower wages (Shane, 2009). However, previous studies have been unable to control for the possibility that the opportunity costs of accepting employment at new firms may differ across individuals. In this paper, we investigate whether a wage penalty for being employed at a new firm exists if we take the individual employee’s experience and status in the labour market into consideration. We focus on individuals who decide to switch jobs and use matched employee-employer data about all firms and employees in Sweden for the period 1998-2010. Our results show that the share of job transitions into lower wages are higher for those who switch to new firms compared to incumbent firms (40 percent and 31 percent respectively). Our endogenous wage equation estimates indicate that being an involuntary job switcher has an equally negative effect on wages at both new and incumbent firms. However, the positive effect of education on wages is more pronounced for job switchers selecting into incumbent firms.

Nyström, K. & Zhetibaeva Elvung, G. (2015). New firms as employers: The wage penalty for voluntary and involuntary job switchers. Labour, 29(4), 348-366. DOI: 10.1111/labr.12055

Based on content

New firms as employers: The wage penalty for voluntary and involuntary job switchers
Artikel (med peer review)Publication
Nyström, K. & Zhetibaeva Elvung, G.
Publication year

2015

Published in
Abstract

According to previous research, new firms pay lower wages (Shane, 2009). However, previous studies have been unable to control for the possibility that the opportunity costs of accepting employment at new firms may differ across individuals. In this paper, we investigate whether a wage penalty for being employed at a new firm exists if we take the individual employee’s experience and status in the labour market into consideration. We focus on individuals who decide to switch jobs and use matched employee-employer data about all firms and employees in Sweden for the period 1998-2010. Our results show that the share of job transitions into lower wages are higher for those who switch to new firms compared to incumbent firms (40 percent and 31 percent respectively). Our endogenous wage equation estimates indicate that being an involuntary job switcher has an equally negative effect on wages at both new and incumbent firms. However, the positive effect of education on wages is more pronounced for job switchers selecting into incumbent firms.

Recruitment of scarce competences to rural regions: Policy perspectives
Article (with peer review)Publication
Nyström, K.
Publication year

2021

Published in

Review of regional research.

Abstract

This paper studies the perceived difficulty of recruiting scarce competencies to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections of Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and nonrural regions and that the difficulty of recruiting for the right skills results in a lack of skills matching and constitutes an obstacle to growth. Rural regions located close to urban areas can to some extent mitigate these recruitment problems, and their locations pose less of a barrier in recruitment processes compared to those of remotely located rural regions.

Which policies can help remedy recruitment problems faced in rural regions? In both rural and nonrural regions, incentives for writing off student debt and relocation support for accompanying persons and tandem recruitment are perceived to be the most promising policies. Rural regions are more receptive to the implementation of such policies. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed.

Nyström, K. Recruitment of scarce competences to rural regions: Policy perspectives. Rev Reg Res (2021). https://doi.org/10.1007/s10037-021-00155-

The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector
Article (with peer review)Publication
Aldieri, L., Grafström, J., & Vinci, C. P.
Publication year

2021

Published in

Energies, 14(14), 4269.

Abstract

The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

Aldieri, L., Grafström, J., & Vinci, C. P. (2021). The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector. Energies, 14(14), 4269.

Show more