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Knowledge Transfers from Multinational to Domestic Firms: Evidence from Worker Mobility

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  • Jennifer P. Poole

    (University of California)

Abstract

Labor turnover is a commonly cited mechanism for the transmission of technology from multinational to domestic firms. Using a matched establishment-worker database from Brazil, I present evidence consistent with positive multinational wage spillovers through worker mobility. When workers leave multinationals and are rehired at domestic establishments, continuing-workers' wages increase. To my knowledge, this avenue for wage spillovers has not previously been explored. The paper also investigates where spillovers occur and how they are absorbed to demonstrate heterogeneous impacts. Higher-skilled former multinational workers are better able to transfer information, and higher-skilled incumbent domestic workers are better able to absorb information. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Jennifer P. Poole, 2013. "Knowledge Transfers from Multinational to Domestic Firms: Evidence from Worker Mobility," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 393-406, May.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:393-406
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    Keywords

    foreign direct investment; worker mobility; spillovers;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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