Who Leaves, Where to, and Why Worrry? Employee Mobility, Employee Entrepreneurship, and Effects on Source Firm Performance
AbstractWe theorize that differences in human assets’ ability to generate value are linked to exit decisions and their effects on firm performance. Using linked employee-employer data from the U.S. Census Bureau on legal services, we find that employees with higher earnings are less likely to leave relative to employees with lower earnings, but if they do leave, they are more likely to move to a spin-out instead of an incumbent firm. Employee entrepreneurship has a larger adverse impact on source firm performance than moves to established firms, even controlling for observable employee quality. Findings suggest that the transfer of human capital, complementary assets, and opportunities all affect mobility decisions and their impact on source firms.
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Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-32.
Length: 46 pages
Date of creation: Sep 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-17 (All new papers)
- NEP-BEC-2009-10-17 (Business Economics)
- NEP-ENT-2009-10-17 (Entrepreneurship)
- NEP-HRM-2009-10-17 (Human Capital & Human Resource Management)
- NEP-LAB-2009-10-17 (Labour Economics)
- NEP-MIC-2009-10-17 (Microeconomics)
- NEP-SBM-2009-10-17 (Small Business Management)
- NEP-URE-2009-10-17 (Urban & Real Estate Economics)
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- Kronenberg, Kristin & Carree, Martin, 2010. "The effects of workforce composition, labor turnover, and the qualities of entering and exiting workers on productivity growth," MPRA Paper 25844, University Library of Munich, Germany.
- Walter, Sascha & Heinrichs, Simon & Walter, Achim, 2013. "Hostile Parent Firms and Child Firm Performance," EconStor Preprints 68592, ZBW - German National Library of Economics.
- Rider, Christopher I. & Thompson, Peter & Kacperczyk, Aleksandra & Tåg, Joacim, 2013. "Experience and Entrepreneurship," Working Paper Series 970, Research Institute of Industrial Economics.
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