Flight to Safety: How Economic Downturns Affect Talent Flows to Startups

• 成果类型: Article
• 署名作者: Bernstein, Shai; Townsend, Richard R.; Xu, Ting
• 署名单位: Harvard University; National Bureau of Economic Research; University of California System; University of California San Diego; University of Toronto
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad075
• 发表日期: 2024
• 页码: 837
• 关键词: JOB-CREATION; development investment; business cycles; entrepreneurship; cyclicality; MARKET; POLICY; FIRMS; RISK

摘要

Using proprietary data from AngelList Talent, we study how startup job seekers' search and application behavior changed during the COVID-19 downturn. We find that workers shifted their searches and applications away from less-established startups and toward more-established ones, even within the same individual over time. At the firm level, this shift was not offset by an influx of new job seekers. Less-established startups experienced a relative decline in the quantity and quality of applications, ultimately affecting their hiring. Our findings uncover a flight-to-safety channel in the labor market that may amplify the procyclical nature of entrepreneurial activities.