Publication Type

Working Paper

Version

publishedVersion

Publication Date

6-2022

Abstract

I document advertised corporate culture among start-up firms from an online job board. Two corporate-culture types emerge, one that concerns the well-being of em- ployees (worker-centered culture) and another that emphasizes other values, such as cus- tomers, firms, and markets (firm-centered culture). The worker-centered culture attracts 20% more applications than the other culture type. Firms advertising the worker-centered culture exploit worker preference by paying 5% lower salaries than measurably similar jobs. Using a standard model of business creation, I show financially constrained start- ups are incentivized to advocate popular culture, even though doing so is not optimal without financial constraints.

Keywords

Corporate culture, Wage differentials, Entrepreneurship

Discipline

Behavioral Economics

Research Areas

Applied Microeconomics

First Page

1

Last Page

56

Embargo Period

6-8-2021

Copyright Owner and License

Authors

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