IDEAS home Printed from https://ideas.repec.org/a/ucp/jhucap/doi10.1086-671188.html
   My bibliography  Save this article

A Theory of Worker Turnover and Knowledge Transfer in High-Technology Industries

Author

Listed:
  • Kameshwari Shankar
  • Suman Ghosh

Abstract

This paper builds a theoretical model to address evidence on labor mobility patterns in high-technology firms engaged in R&D. Worker turnover in these industries enables the efficient transfer of R&D knowledge across firms in a production environment characterized by volatile returns to R&D investment. We show that both the size and composition of labor turnover are affected by the extent to which R&D knowledge can be transferred and applied across the production processes of different firms. Our analysis also provides implications of such labor mobility for industry growth. We explain how labor turnover in the presence of knowledge transfer has contributed to the success of the high-technology cluster in Silicon Valley.

Suggested Citation

  • Kameshwari Shankar & Suman Ghosh, 2013. "A Theory of Worker Turnover and Knowledge Transfer in High-Technology Industries," Journal of Human Capital, University of Chicago Press, vol. 7(2), pages 107-129.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/671188
    DOI: 10.1086/671188
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/671188
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/671188
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/671188?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stefan Bender & Julia Lane & Kathryn Shaw & Fredrik Andersson & Till von Wachter, 2008. "The Analysis of Firms and Employees: Quantitative and Qualitative Approaches," NBER Books, National Bureau of Economic Research, Inc, number bend08-1, March.
    2. Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2006. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 472-481, August.
    3. Gerlach, Heiko & Rønde, Thomas & Stahl, Konrad, 2009. "Labor pooling in R&D intensive industries," Journal of Urban Economics, Elsevier, vol. 65(1), pages 99-111, January.
    4. Fosfuri, Andrea & Ronde, Thomas, 2004. "High-tech clusters, technology spillovers, and trade secret laws," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 45-65, January.
    5. Cooper, David P., 2001. "Innovation and reciprocal externalities: information transmission via job mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 45(4), pages 403-425, August.
    6. Coles, Melvyn & Mortensen, Dale T., 2011. "Equilibrium Wage and Employment Dynamics in a Model of Wage Posting without Commitment," IZA Discussion Papers 5900, Institute of Labor Economics (IZA).
    7. Jed DeVaro & Michael Waldman, 2012. "The Signaling Role of Promotions: Further Theory and Empirical Evidence," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 91-147.
    8. Patricia M. Anderson & Bruce D. Meyer, 1994. "The Extent and Consequences of Job Turnover," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 177-248.
    9. Sampsa Samila & Olav Sorenson, 2011. "Noncompete Covenants: Incentives to Innovate or Impediments to Growth," Management Science, INFORMS, vol. 57(3), pages 425-438, March.
    10. Stefan Bender & Julia Lane & Kathryn Shaw & Fredrik Andersson & Till von Wachter, 2008. "Introduction to "The Analysis of Firms and Employees: Quantitative and Qualitative Approaches"," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 1-16, National Bureau of Economic Research, Inc.
    11. Limor Golan, 2005. "Counteroffers and Efficiency in Labor Markets with Asymmetric Information," Journal of Labor Economics, University of Chicago Press, vol. 23(2), pages 373-393, April.
    12. Eriksson, Tor & Werwatz, Axel, 2005. "The Prevalence of Internal Labour Markets - New Evidence from Panel Data," Working Papers 04-19, University of Aarhus, Aarhus School of Business, Department of Economics.
    13. Perri, Timothy J., 1995. "Is there a winner's curse in the labor market?," Journal of Economic Behavior & Organization, Elsevier, vol. 28(1), pages 79-89, September.
    14. Limor Golan, "undated". "Counteroffers and Efficiency in Competitive Labor Markets with Asymmetric Information," GSIA Working Papers 2002-E28, Carnegie Mellon University, Tepper School of Business.
    15. Bender, Stefan & Lane, Julia & Shaw, Kathryn L. & Andersson, Fredrik & von Wachter, Till (ed.), 2008. "The Analysis of Firms and Employees," National Bureau of Economic Research Books, University of Chicago Press, number 9780226042879, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mitchell Hoffman & Steven Tadelis, 2021. "People Management Skills, Employee Attrition, and Manager Rewards: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 129(1), pages 243-285.
    2. Suman Ghosh & Kameshwari Shankar, 2017. "Optimal Enforcement Of Noncompete Covenants," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 305-318, January.
    3. Oz Shy & Rune Stenbacka, 2019. "Anti‐Poaching Agreements In Labor Markets," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 243-263, January.
    4. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "Threshold Effect of High-Tech Industrial Scale on Green Development—Evidence from Yangtze River Economic Belt," Sustainability, MDPI, vol. 11(5), pages 1-21, March.
    5. Eriksson, Tor & Qin, Zhihua & Wang, Wenjing, 2014. "Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms," China Economic Review, Elsevier, vol. 30(C), pages 583-597.
    6. Shy, Oz & Stenbacka, Rune, 2018. "Dynamic labor market competition and wage seniority," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 130-154.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kameshwari Shankar & Suman Ghosh, 2005. "Favorable Selection in the Labor Market: A Theory of Worker Mobility in R&D Intensive Industries," Working Papers 05006, Department of Economics, College of Business, Florida Atlantic University.
    2. Kaiser, Ulrich & Kongsted, Hans Christian & Rønde, Thomas, 2015. "Does the mobility of R&D labor increase innovation?," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 91-105.
    3. Hamermesh, Daniel, 2008. "Fun with matched firm-employee data: Progress and road maps," Labour Economics, Elsevier, vol. 15(4), pages 662-672, August.
    4. Dato, Simon & Grunewald, Andreas & Kräkel, Matthias & Müller, Daniel, 2016. "Asymmetric employer information, promotions, and the wage policy of firms," Games and Economic Behavior, Elsevier, vol. 100(C), pages 273-300.
    5. Marc-Arthur Diaye & Nathalie Greenan, 2012. "The Economics of Performance Appraisals," Working Papers halshs-00856229, HAL.
    6. repec:zbw:rwirep:0499 is not listed on IDEAS
    7. Peter Hinrichs, 2014. "An Empirical Analysis of Racial Segregation in Higher Education," Working Papers (Old Series) 1435, Federal Reserve Bank of Cleveland.
    8. Erling Barth & Alex Bryson & James C. Davis & Richard Freeman, 2014. "It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the U.S," NBER Working Papers 20447, National Bureau of Economic Research, Inc.
    9. Jon Anderson & Stephen Burks & Jeffrey Carpenter & Lorenz Götte & Karsten Maurer & Daniele Nosenzo & Ruth Potter & Kim Rocha & Aldo Rustichini, 2013. "Self-selection and variations in the laboratory measurement of other-regarding preferences across subject pools: evidence from one college student and two adult samples," Experimental Economics, Springer;Economic Science Association, vol. 16(2), pages 170-189, June.
    10. Beatrice Brunner & Andreas Kuhn, 2014. "The impact of labor market entry conditions on initial job assignment and wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 705-738, July.
    11. Burks, Stephen V. & Monaco, Kristen, 2018. "Is the U.S. Labor Market for Truck Drivers Broken? An Empirical Analysis Using Nationally Representative Data," IZA Discussion Papers 11813, Institute of Labor Economics (IZA).
    12. Gerard, François & Lagos, Lorenzo & Severnini, Edson & Card, David, 2018. "Assortative Matching or Exclusionary Hiring? The Impact of Firm Policies on Racial Wage Differences in Brazil," CEPR Discussion Papers 13273, C.E.P.R. Discussion Papers.
    13. Peter Hinrichs, 2024. "An Empirical Analysis of Racial Segregation in Higher Education," Education Finance and Policy, MIT Press, vol. 19(2), pages 218-251, Spring.
    14. Peter Cappelli & Martin J. Conyon, 2018. "What Do Performance Appraisals Do?," ILR Review, Cornell University, ILR School, vol. 71(1), pages 88-116, January.
    15. Adrienne T. Edisis, 2016. "The Effect of Unemployment Insurance on Temporary Help Services Employment," Journal of Labor Research, Springer, vol. 37(4), pages 484-503, December.
    16. Pekka Ilmakunnas & Seija Ilmakunnas, 2011. "Diversity at the Workplace: Whom Does it Benefit?," De Economist, Springer, vol. 159(2), pages 223-255, June.
    17. Bachmann, Ronald & Bauer, Thomas K. & David, Peggy, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 188, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    18. Ronald Bachmann & Thomas K. Bauer & Peggy David, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 0188, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Stephen V. Burks & Daniele Nosenzo & Jon Anderson & Matthew Bombyk & Derek Ganzhorn & Lorenz Goette & Aldo Rustichini, 2015. "Lab Measures of Other-Regarding Preferences Can Predict Some Related on-the-Job Behavior: Evidence from a Large Scale Field Experiment," Discussion Papers 2015-21, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    20. Gicheva, Dora, 2012. "Worker mobility, employer-provided general training, and the choice of graduate education," Labour Economics, Elsevier, vol. 19(2), pages 232-240.
    21. repec:zbw:rwirep:0188 is not listed on IDEAS
    22. Rustichini, Aldo & DeYoung, Colin G. & Anderson, Jon E. & Burks, Stephen V., 2012. "Toward the Integration of Personality Theory and Decision Theory in the Explanation of Economic and Health Behavior," IZA Discussion Papers 6750, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jhucap:doi:10.1086/671188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JHC .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.