Studies from Federal Reserve Board of Governors Describe New Findings in Economics and Statistics (Early Joiners and Startup Performance): Economics – Economics and Statistics

2025 DEC 19 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- A new study on Economics - Economics and Statistics is now available. According to news reporting from Washington, District of Columbia, by NewsRx journalists, research stated, “We show that early joiners-nonfounder employees in the first year of a startup-play a critical role in shaping firm performance. We use administrative employer-employee matched data on U.S. startups and utilize premature death as a natural experiment that exogenously separates talent from startups.”

The news correspondents obtained a quote from the research from the Federal Reserve Board of Governors, “We find that losing an early joiner has large negative effects on employment and revenues that persist for at least ten years. In contrast, losing a later joiner yields only a small and temporary decline in firm performance.”

According to the news reporters, the research concluded: “Our results imply that organization capital, an important driver of startup success, is embodied in early joiners.”

This research has been peer-reviewed.

For more information on this research see: Early Joiners and Startup Performance. Review of Economics and Statistics, 2025;107(6):1485-1500. Review of Economics and Statistics can be contacted at: Mit Press, One Rogers St, Cambridge, MA 02142-1209, USA.

Our news journalists report that additional information may be obtained by contacting Joonkyu Choi, Federal Reserve Board of Governors, Washington, DC 20551, United States. Additional authors for this research include Nathan Goldschlag, John Haltiwanger and J. Daniel Kim.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1162/rest_a_01386. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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