# Best reason to join a startup? Not to get rich | Tech News (HT Tech) > A study finds that startup employees don’t earn more in the long run. But that doesn’t mean the route isn’t worth considering. # Best reason to join a startup? Not to get rich ## A study finds that startup employees don’t earn more in the long run. But that doesn’t mean the route isn’t worth considering. Aug 20 2022, 23:49 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![A study found those who joined a startup that had been operating for four or fewer years earned 17% less in the following decade compared with those who joined an established company.](https://images.hindustantimes.com/tech/img/2020/11/08/1600x900/startup-593341_1920_1604827744256_1604827754976.jpg) A study found those who joined a startup that had been operating for four or fewer years earned 17% less in the following decade compared with those who joined an established company. (Pixabay) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By BLOOMBERG The US has such an infatuation with startup culture that many have wondered: Do startup employees earn more in the long run? The answer: No. Or so says a recent study that analysed the long-term consequences of startup employment in Denmark from 1992 to 2012. It found those who joined a startup that had been operating for four or fewer years earned 17% less in the following decade compared with those who joined an established company. The researchers chose this particular setting because Denmark’s economy, according to their paper, is representative of other high-income countries including the United States. Also read click here. As someone who spent two years of her early career with a startup — as one of its earliest employees — this finding struck a chord with me. And it should give others planning their careers pause as we continue into the pandemic recession. One key takeaway is how startups are particularly vulnerable to economic downturns, and how startup employees can find themselves on the job hunt at the same time employment becomes hard to land. Being unemployed in a recession has a significant and long-lasting impact on earnings and is one of the reasons startup employment can depress wages over the long term. Does this mean you shouldn’t join a startup that’s hiring? Not necessarily. A lot rides on your risk tolerance, expectations of a job and, perhaps most importantly, your other employment prospects. Of course, there’s an argument that working at a startup is about more than just immediate compensation. You could get equity stake, with the potential to get a big payoff later. However, this isn’t off the table if you join an older firm. Some companies offer an employee stock purchase plan or similar incentives that pay handsomely on top of comp. Also Read: Microsoft, Accenture partner to support startups in India Another common thought is that a startup provides significant opportunity for learning and growth because there’s less of a structured hierarchy and you’ll likely wear multiple hats. Unfortunately, the study found that this “jack of all trades” approach often results in a “master of none” outcome. That may be why job titles at startups don’t always translate to similar positions at established firms. One point in the pro column for working at a startup is the potential for an exciting environment with a unique sense of camaraderie. But it’s important to consider how even this may one day peter out. Whether your company gets acquired by a large brand, or grows and becomes the establishment itself, the once laissez faire attitude that perhaps dominated your company culture will morph. That’s important to plan for. Of course, this is even if your startup makes it that long. There is, according to the study, an exception to the finding that startup employees earn less than those who work with established firms. It appears there is a sweet spot for joining a new venture: after it reaches about 50 employees but before it reaches its fifth year in business. Those who started at this point actually reported slightly higher earnings than those who opted to work at an established firm from the start of the study period. Perhaps one of the most discouraging takeaways from the entire study is wrapped up in these two sentences: The press loves to cover the janitor or receptionist who became rich from being employed at a high-tech startup. But these events are as likely and as representative of the common experience of startup employees as is the multi-million-dollar lottery winner among those buying tickets. Also Read: 120 Indian startups plan to team up to take on Google Basically, it suggests that finding your fortune in a startup is akin to playing the lottery. But I would argue this is largely dependent on your industry, so it’s not entirely outside the realm of possibility that working for a startup will increase your long-term compensation. For those who work in tech, it makes sense why a startup is perhaps emotionally thrilling, but a gamble career-wise. After all, going to an established firm does mean high pay, usually competitive benefits and perhaps an employer stock purchase plan. What about those of us in other industries like media? When I moved to a startup, my salary went up 30% and within two years I was earning nearly double what I had prior to joining. This helped reshape my perception of what I could earn. Yes, the exception does not make the rule. However, it’s important to consider that startups employ a lot of people in various industries and for some of us, that leap might actually make a lot of sense. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel. 08 Nov, 15:08 IST startup ![HT Tech Awards](https://tech.hindustantimes.com/ht-tech-power-list-awards-2026/httech-awards-banner-new.webp) ### Related Stories 07 Oct 2026 71,604,826,822,168 NEXT ARTICLE BEGINS ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Tips & Tricks ![Ghibli-style art](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide ![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide ![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple TV app arrives on Android phones and tablets: What you get and how to install it ![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how ![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to transfer data from one Android to another using Google backup, USB-C cable, and more ## Editor’s Pick ![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 16e launched in India: All details about the new budget mobile from Apple ![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained ![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on ![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini ![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update ## Trending Stories ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside keep up with tech ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png) ![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png) ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ## Gaming ![Check out these five gaming monitors under ₹20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Top 5 gaming monitors under ₹20000 you should consider ![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off ![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges ![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Shade Silver free on Steam for a limited time: Here’s how to get it ![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Trending News ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside ![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif) ## Trending Gadgets Mobiles Laptops Tablets ![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif) - https://tech.hindustantimes.com/tech/news/best-reason-to-join-a-startup-not-to-get-rich-71604826822168.html