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Juanita Gonzalez-Uribe (London School of Economics)

3 April 2025 @ 12:15 - 13:30

 

  • Past event

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Date:
3 April 2025
Time:
12:15 - 13:30
Event Category:
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Academic Events

The Soft Skills Dividend: How Business Accelerators Shape Startup Employee Careers

Joint with ESCP Business School

Venue: ESCP Business School – Turin Campus, Via Andrea Doria, 27


Abstract: High-growth startups fuel economic dynamism and receive substantial government support worldwide, often through acceleration programs. While the impact of these programs on businesses is well-documented, little is known about how they shape employee careers. We provide the first systematic evidence that startup acceleration enhances career trajectories through a “soft skills dividend.” Using a two-pronged approach—analyzing a large cross-program dataset from the Americas and a quasi-experimental study with administrative wage data from Colombia’s ValleE accelerator—we find that employees of accelerated firms earn higher wages over time without increased employability risks. These gains stem from transitions into other companies and roles requiring greater soft skills—behavioral and social traits that enable individuals to collaborate effectively—leading to more managerial, entrepreneurial, or leadership positions. Alternative explanations, such as certification, validation, or networking, are less consistent with the results. Our findings highlight the broader impact of accelerators on human capital development.