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"Good" Firms, Worker Flows, and Local Productivity

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  • Michel Serafinelli

Abstract

This paper is the first to present direct evidence showing how localized knowledge spillovers arise from workers changing jobs within the same local labor market. Using a unique data set combining Social Security earnings records and balance sheet information for the Veneto region of Italy, I first identify a set of highly productive firms, then show that hiring workers with experience at these firms significantly increases the productivity of other firms. My findings imply that worker flows explain around 10% of the productivity gains experienced by incumbent firms when new highly productive firms are added to a local labor market.

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  • Michel Serafinelli, 2019. ""Good" Firms, Worker Flows, and Local Productivity," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 747-792.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/702628
    DOI: 10.1086/702628
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    3. Kraft, Kornelius & Rammer, Christian, 2023. "Intended and unintended knowledge spillovers in innovation," ZEW Discussion Papers 23-015, ZEW - Leibniz Centre for European Economic Research.
    4. Breandán Ó hUallacháin, 2025. "Organisations and the dynamics of change in the location of American invention," Urban Studies, Urban Studies Journal Limited, vol. 62(6), pages 1099-1122, May.
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