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Good Firms, Worker Flows and Productivity

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  • Serafinelli, Michel

Abstract

I present direct evidence on the role of firm-to-firm labor mobility in enhancing the productivity of firms located near highly productive firms. Using matched employer-employee and balance sheet data for the Veneto region of Italy, I identify a set of high-wage firms (HWF) and show they are more productive than other firms. I then show that hiring a worker with HWF experience increases the productivity of other (non-HWF) firms. A simulation indicates that worker flows explain 10-15 percent of the productivity gains experienced by other firms when HWFs in the same industry are added to a local labor market.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47508.

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Date of creation: 09 Jun 2013
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Handle: RePEc:pra:mprapa:47508

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Keywords: productivity; agglomeration advantages; linked employer-employee data; labor mobility.;

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Cited by:
  1. Cornelissen, Thomas & Dustmann, Christian & Schönberg, Uta, 2013. "Peer Effects in the Workplace," IZA Discussion Papers 7617, Institute for the Study of Labor (IZA).
  2. Michèle A. Weynandt, 2014. "Selective Firing and Lemons," NRN working papers 2014-05, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  3. Blanchflower, David G. & Oswald, Andrew J., 2013. "Does High Home-Ownership Impair the Labor Market?," IZA Discussion Papers 7640, Institute for the Study of Labor (IZA).

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