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The Effect of Learning by Hiring on Productivity

Author

Listed:
  • Pierpaolo Parrotta

    (UNIL - Université de Lausanne, Aarhus University [Aarhus])

  • Dario Pozzoli

Abstract

This article focuses on the phenomenon of interfirm labor mobility as a potential channel for knowledge transfer. Using data from the Danish employer-employee register covering the period 1995–2005, we investigate how knowledge carriers—technicians and highly educated workers recruited from a donor firm—contribute to knowledge diffusion and enhanced productivity in the hiring (recipient) firm. Structural estimation of the hiring firms' production functions shows that the impact of the recruitment of knowledge carriers on a firm's value added is an increase of 1%–2%. Several robustness checks confirm this finding

Suggested Citation

  • Pierpaolo Parrotta & Dario Pozzoli, 2012. "The Effect of Learning by Hiring on Productivity," Post-Print hal-01514786, HAL.
  • Handle: RePEc:hal:journl:hal-01514786
    DOI: 10.1111/j.1756-2171.2012.00161.x
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01514786
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    References listed on IDEAS

    as
    1. Stephen Bond & Måns Söderbom, 2005. "Adjustment Costs and the Identification of Cobb Douglas Production Functions," Economics Papers 2005-W04, Economics Group, Nuffield College, University of Oxford.
    2. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    3. repec:ags:stataj:116231 is not listed on IDEAS
    4. Amil Petrin & Brian P. Poi & James Levinsohn, 2004. "Production function estimation in Stata using inputs to control for unobservables," Stata Journal, StataCorp LP, vol. 4(2), pages 113-123, June.
    5. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
    6. Stephen Bond & Måns Söderbom, 2005. "Adjustment Costs and the Identification of Cobb Douglas Production Functions," Economics Series Working Papers 2005-W04, University of Oxford, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    learning-by-hiring ; labor mobility; Productivity; Knowledge transfer; knowledge carrier;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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