Wages in high-tech start-ups: Do academic spin-offs pay a wage premium?

Arbeitspapier

Due to their origin from universities, academic spin-offs operate at the forefront of the technological development. Therefore, spin-offs exhibit a skill-biased labour demand, i.e. spin-offs have a high demand for employees with cutting edge knowledge and technical skills that distinguish them even from other high-tech start-up firms. In order to accommodate this demand, spin-offs may have to pay a relative wage premium compared to other high-tech start-ups. However, neither a comprehensive theoretical assessment nor the empirical literature on wages in start-ups unambiguously predicts the existence and the direction of wage differentials between spin-offs and non-spin-offs. This paper addresses this research gap and examines empirically whether or not spin-offs pay their employees a wage premium. Using a unique linked employer-employee data set of German high-tech start-ups, we estimate Mincer-type wage regressions applying the Hausman-Taylor panel estimator. Our results show that spin-offs do not pay a wage premium in general. However, a notable exception from this general result is that spin-offs that commercialise new scientific results or methods provide higher wages to employees with linkages to the university sector - either as university graduates or as student workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAB-Discussion Paper ; No. 17/2015

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Entrepreneurship ; New Firms; Startups ; Intellectual Property and Intellectual Capital
• Subject: wages ; high-tech start-ups ; academic spin-offs ; linked employeremployee data

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dorner, Matthias ; Fryges, Helmut ; Schopen, Kathrin
• Event: Veröffentlichung
• (who): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (where): Nürnberg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/119439
• Last update: 10.03.2025, 11:46 AM CET