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EEE Speaker Series: Mike Roach (Cornell University)
Start Date: 2/9/2018Start Time: 11:00 AM
End Date: 2/9/2018End Time: 12:30 PM
Event Description:

Why Would Anyone Join a Startup? Preferences, Ability, and Structural Constraints in First-Time Employment in Startups or Established Firms


Entrepreneurship scholars and policy makers pay increasing attention to individuals who join entrepreneurial ventures as employees. Established firms also recognize the importance of attracting innovative and entrepreneurial workers. It is not clear, however, why some people join startups while others work for established firms. We examine the extent to which individuals’ initial employment outcomes are explained by career preferences, ability, and structural constraints in the labor market. Using panel data on 2,284 scientists and engineers observed during graduate school and again in fulltime employment, we find strong evidence of preference-based sorting. At the same time, labor market factors including the limited availability of startup jobs and work visa requirements constrain preference-based sorting into startup employment, while ability does little to explain sorting. Finally, individuals with entrepreneurial career preferences whose initial employment is in an established firm are more likely to leave within 3 years to join a startup. We discuss implications for entrepreneurship research as well as for the management of human capital, firm performance, and public policy.

Location Information:
Syracuse University - Whitman School of Management  (View Map)
721 University Ave
Syracuse, NY 13244
Phone: (315) 443-3751
Room: Whitman 525
Attachments For This Event:
    > Roach CV
    > Roach Paper

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