The Liability of Newness: Age Dependence in Organizational Death Rates

Age dependence in organizational death rates is studied using data on three populations of organizations: national labor unions, semiconductor electronics manufacturers, and newspaper publishing companies. There is a liability of newness in each of these populations but it differs depending on whether death occurs through dissolution or by absorption through merger. Liabilities of smallness and bigness are also identified but controlling for them does not eliminate age dependence.