PARIS, 23 Nov. - (ANA) - New OECD analysis using data from France and Portugal challenges the assumption that young firms pay less or offer less secure contracts. 

 

Instead, these firms often provide competitive wages, more permanent contracts and narrower pay gaps between women and men when similar workers are compared. 

 

They also provide a valuable workforce entry point for foreign-born workers. This blog post explores what the evidence shows and how it can inform policies.

 

Labour markets across developed economies face a persistent challenge: how to create not just more jobs, but better and fairer employment opportunities. Women still face wage gaps and concerns about job security remain widespread.

 

A business environment that makes it easier for young firms - those that are younger than five years, typically start-ups and small businesses - to enter the market and operate could help address these challenges. 

 

Recent OECD research using data from France and Portugal shows that, once similar workers are compared, young firms do not pay less or offer less secure contracts. They also contribute to inclusiveness by reducing the gender wage gap and hiring foreign-born workers, while playing a vital role in job creation and innovation.

 

 

 

The data show that although young firms appear to pay lower wages on average, this gap disappears – and even reverses – once differences in worker and firm characteristics are taken into account. Young firms tend to hire younger and less experienced workers, which naturally lowers their average wage levels.

 

But when comparing workers of similar age, tenure and experience, young firms paid between 0.4% and 0.8% more than older firms. 

 

This wage premium may reflect the need for these young companies to compete for talent despite higher business risk and less diverse career opportunities. Paying a wage premium could be one way to attract employees in the face of this uncertainty. This suggests that policies fostering entrepreneurship don't come at the expense of worker pay, and may even help lift it.   - (ANA) -

 

 

To download the full report, visit: https://www.oecd.org/en/blogs/2025/11/do-start-ups-provide-better-jobs-what-new-oecd-evidence-shows-on-wage-gaps-contract-security-and-opportunities.html?adestraproject=Science%2C%20Technology%20and%20Innovation&utm_campaign=STI%20News%2019%20November&utm_content=Read%20the%20blog%3A%20Do%20start-ups%20offer%20better%20jobs%3F&utm_term=sti&utm_medium=email&utm_source=Adestra

 

 

AB/ANA/23 November 2025 - - -