Failing Just Fine: Assessing Careers of Venture Capital-backed Entrepreneurs via a Non-Wage Measure

76 Pages Posted: 11 Jul 2022 Last revised: 23 Jan 2023

See all articles by Natee Amornsiripanitch

Natee Amornsiripanitch

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Paul A. Gompers

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

George Hu

Harvard University

William Levinson

Harvard University - Business School (HBS)

Vladimir Mukharlyamov

Georgetown University - McDonough School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: June 24, 2022

Abstract

This paper proposes a non-pecuniary measure of career achievement, seniority. Based on a database of over 130 million resumes, this metric exploits the variation in how long it takes to attain job titles. When non-monetary factors influence career choice, assessing career attainment via non-wage measures, such as seniority, has significant advantages. Accordingly, we use our seniority measure to study labor market outcomes of VC-backed entrepreneurs. Would-be founders experience accelerated career trajectories prior to founding, significantly outperforming graduates from same-tier colleges with similar first jobs. After exiting their start-ups, they obtain jobs about three years more senior than their peers who hold (i) same-tier college degrees, (ii) similar first jobs, and (iii) similar jobs immediately prior to founding their company. Even failed founders find jobs with higher seniority than those attained by their non-founder peers.

Keywords: Career progression, Entrepreneurship, Venture capital

JEL Classification: G00, J00, J3, J30, J31, J44, J6, J63

Suggested Citation

Amornsiripanitch, Natee and Gompers, Paul A. and Hu, George and Levinson, William and Mukharlyamov, Vladimir, Failing Just Fine: Assessing Careers of Venture Capital-backed Entrepreneurs via a Non-Wage Measure (June 24, 2022). Georgetown McDonough School of Business Research Paper No. 4145818, Available at SSRN: https://ssrn.com/abstract=4145818 or http://dx.doi.org/10.2139/ssrn.4145818

Natee Amornsiripanitch (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Paul A. Gompers

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6297 (Phone)
617-496-8443 (Fax)

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

George Hu

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

William Levinson

Harvard University - Business School (HBS) ( email )

Boston, MA 02163
United States

Vladimir Mukharlyamov

Georgetown University - McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
United States

HOME PAGE: http://https://sites.google.com/view/mukharlyamov

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