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
Citation
LEE, Jungho.
Start-up firms and corporate culture: Evidence from advertised corporate culture. (2022). 1-56.
Available at: https://ink.library.smu.edu.sg/soe_research/2478
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.