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Worker Mobility and the Diffusion of Knowledge

Author

Listed:
  • Kyle Herkenhoff

    (University of Minnesota)

  • Gordon Phillips

    (Dartmouth College)

  • Jeremy Lise

    (University of Minnesota)

  • guido menzio

    (University of Pennsylvania)

Abstract

We develop a theory of teams to measure the way knowledge diffuses across workers. We extend the sequential auctions framework to allow for workers to influence each other's knowledge. Workers can search on-the-job and leave their team to start a new team, carrying some of their knowledge with them. In contrast to standard sorting models, a firm's type is no longer exogenous; it is coworker human capital. Using a new methodology, we estimate the knowledge diffusion process and the degree of worker complementarities in production with micro wage data and job mobility patterns from the LEHD. Our estimated parameters imply both positive peer effects and strong production complementarities.

Suggested Citation

  • Kyle Herkenhoff & Gordon Phillips & Jeremy Lise & guido menzio, 2018. "Worker Mobility and the Diffusion of Knowledge," 2018 Meeting Papers 457, Society for Economic Dynamics.
    • Handle: RePEc:red:sed018:457
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    Cited by:

    1. Gregor Jarosch & Ezra Oberfield & Esteban Rossi‐Hansberg, 2021. "Learning From Coworkers," Econometrica, Econometric Society, vol. 89(2), pages 647-676, March.
    2. Tania Babina & Sabrina T. Howell, 2018. "Entrepreneurial Spillovers from Corporate R&D," NBER Working Papers 25360, National Bureau of Economic Research, Inc.

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