Failing Just Fine: Assessing Careers of Venture Capital-Backed Entrepreneurs Via a Non-Wage Measure

69 Pages Posted: 27 Jun 2022 Last revised: 18 Jun 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 - Department of Economics

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 2022

Abstract

This paper proposes a non-pecuniary measure of career achievement, Seniority. Based on a database of over 5 million resumes, this metric exploits the variation in job titles and how long they take to attain. When non-monetary factors influence career choice, inference benefits from the use of non-wage measures, such as seniority. We apply it to study labor market outcomes of VC-backed entrepreneurs. Would-be founders experience accelerated career trajectories prior to founding, significantly outperforming graduates of same-tier colleges with similar first jobs. After exiting their start-ups, they obtain jobs about three years more senior than their right-before-founding peers. Even failed founders land jobs with higher seniority than those attained by their peers in the meantime.

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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 2022). NBER Working Paper No. w30179, Available at SSRN: https://ssrn.com/abstract=4147249 or http://dx.doi.org/10.2139/ssrn.4147249

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)

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European Corporate Governance Institute (ECGI)

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Belgium

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

George Hu

Harvard University - Department of Economics ( email )

Littauer Center
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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