Labor Market Institutions and the Success of Startups

Last registered on January 09, 2026
View Trial History

Pre-Trial

Trial Information

General Information

Title
Labor Market Institutions and the Success of Startups
RCT ID
AEARCTR-0017593
Initial registration date
January 06, 2026

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
January 09, 2026, 8:51 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Denmark
Region

Primary Investigator

Name
Renato Faccini
Affiliation
Danmarks Nationalbank
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Seho Kim
PI Affiliation
Danmarks Nationalbank
Contact Investigator

Additional Trial Information

Status
On going
Start date
2025-10-01
End date
2027-12-31
Keywords
Behavior, Labor
Additional Keywords
wage compensation
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study examines how unemployment risk affect workers’ wage expectations and job choices, particularly in jobs that involve higher uncertainty. We conduct a randomized survey experiment in which employed individuals are presented with hypothetical job offers that differ in job stability. Respondents receive information designed to make the risk of unemployment more or less salient.

The study aims to understand how concerns about job loss influence the wage compensation workers require to accept riskier jobs, and whether safer labor-market conditions change these trade-offs. The results will help clarify how labor-market institutions and perceptions of job security shape wage setting and employment decisions.
External Link(s)

Registration Citation

Citation
Faccini, Renato and Seho Kim. 2026. "Labor Market Institutions and the Success of Startups." AEA RCT Registry. January 09. https://doi.org/10.1257/rct.17593-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2026-01-11
Intervention End Date
2026-06-01

Primary Outcomes

Primary Outcomes (end points)
Required wages
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
This study uses a randomized survey experiment based on hypothetical job-offer vignettes. Respondents are presented with job scenarios that vary along fixed dimensions, such as firm type and job risk.
The experimental variation concerns the duration of unemployment following potential job loss, which is randomly assigned across respondents. This variation is used to capture differences in perceived unemployment risk and labor-market safety.
After viewing the vignette, participants are asked to report the wage they would require to accept jobs at different types of firms. Randomization is implemented at the individual level.
The design allows the study of how differences in expected unemployment duration affect stated wage compensation, while holding other job characteristics constant.
Experimental Design Details
Not available
Randomization Method
Randomization is implemented at the individual level using computer-generated random assignment.
Randomization Unit
Individual-level randomization (survey respondents).
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
Not applicable
Sample size: planned number of observations
We are planning for around 2400 respondents
Sample size (or number of clusters) by treatment arms
Participants are randomly assigned to treatment arms with equal probability.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
The Survey Ethics Committee, Danmarks Nationalbank
IRB Approval Date
2025-11-21
IRB Approval Number
DN-IRB 2025-01
Analysis Plan