Entrepreneurship of the ice age cohorts

A cohort that struggles to enter the labor market during economic downturns may struggle to secure stable employment and income throughout their lives. The “Ice Age” cohorts are ones that entered the Japanese labor market during the prolonged economic recession between 1993 and 2004. This study examines the performance of startups established by the Ice Age cohorts. With limited job opportunities, some Ice Age cohorts likely attempted to start their businesses as an alternative means of income. Using a panel survey of startups, we examine the performance of such attempts. Startups established by the Ice Age cohorts had significantly higher survival rates than those established by the “bubble” cohorts that entered the labor market during the economic boom. However, among the surviving startups, those established by the Ice Age cohorts with junior college or vocational school backgrounds underperform relative to the bubble cohorts. These results suggest that the Ice Age cohorts faced limited employment opportunities in the labor market upon entry and were forced to continue operating their businesses under suboptimal performance conditions.