Year
2024
Authors
CONTI Raffaele, CASTELLANETA Francesco, KACPERCZYK Aleksandra, MAMADEHUSSENE Samir
Abstract
Past research has examined the link between initiatives promoting entrepreneurship and compensation, but scholars have predominantly focused on earnings of individuals directly engaged in the founding process, such as founders, cofounders, and start-up employees. Shifting our focus to incumbent workers, we instead propose that a decline in the cost of entrepreneurship increases the variance in pay among incumbent workers who are not involved in entrepreneurial activities. We posit that, as entrepreneurship becomes a more attractive career option, due to institutional changes, the outside option value of entrepreneurship increases.
CASTELLANETA, F., CONTI, R., KACPERCZYK, A. et MAMADEHUSSENE, S. (2024). The Indirect Effect of Entrepreneurship on Pay Dispersion: Entry Cost Reduction, Mobility Threat, and Wage Redistribution Within Incumbent Firms. Organization Science, In press.