The Importance of Labour Mobility for Spillovers across Industries
AbstractThis paper addresses the link between productivity and labour mobility. The hypothesis tested in the paper is that technology is transmitted across industries through the movement of skilled workers embodying human capital. The embodied knowledge is then diffused within the new environment creating spillovers and leading to productivity improvements. A theoretical framework is presented wherein productivity growth is modelled through knowledge acquisition with respect to labour mobility. The empirical estimates confirm the existence of positive cross-sectoral knowledge spillovers and indicate that labour mobility has beneficial effects on industry productivity. Due to the fact that labour mobility is closely linked to input-output relations this finding provides evidence suggesting that part of the estimated productivity effects of domestic rent spillovers are in fact due to knowledge spillovers resulting from labour mobility.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 58.
Length: 33 pages including 8 Tables
Date of creation: Oct 2009
Date of revision:
Publication status: Published as wiiw Working Paper
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-05 (All new papers)
- NEP-EFF-2010-02-05 (Efficiency & Productivity)
- NEP-GEO-2010-02-05 (Economic Geography)
- NEP-LAB-2010-02-05 (Labour Economics)
- NEP-MIG-2010-02-05 (Economics of Human Migration)
- NEP-SBM-2010-02-05 (Small Business Management)
- NEP-URE-2010-02-05 (Urban & Real Estate Economics)
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