Young firms, job quality and inclusiveness

This paper analyses jobs in young firms, compared to older ones, in terms of wages, contract security and inclusiveness. Inclusiveness refers to labour market outcomes for women, foreign-born workers or foreigners. Comprehensive analysis based on French and Portuguese linked employer-employee data suggests that for similar workers, young firms tend to pay a small wage premium and offer more stable contracts. Gender wage gaps tend to be smaller in young firms, but they do not seem to employ more women. Wage gaps between workers born in France and foreign-born workers, or Portuguese workers and foreigners, appear to some extent higher in young firms but they employ a higher share of foreign-born workers or foreigners. Hence, fostering business dynamism can nurture inclusive labour markets and promote economic growth.