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The Role of Workers in Knowledge Diffusion Across Firms

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  • Anders Akerman

    (University of Stavanger)

  • Kerstin Holzheu

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

Abstract

We study how worker mobility contributes to aggregate productivity growth by diffusing knowledge across firms. We develop a multi-worker-firm framework with random search and on-the-job mobility in which firm productivity improves through in-house innovation and through hiring workers from other firms. Using Swedish matched employer–employee and product-level data, together with event-study evidence based on shift-share international trade shocks, we show that the extent and direction of worker mobility affect firm productivity. We estimate that mobility-driven knowledge diffusion accounts for over 44% of growth in average firm productivity. Our results suggest that lower worker mobility, and more mobility from less productive firms, can depress growth in average firm productivity.

Suggested Citation

  • Anders Akerman & Kerstin Holzheu, 2026. "The Role of Workers in Knowledge Diffusion Across Firms," Sciences Po Economics Discussion Papers hal-04615364, HAL.
    • Handle: RePEc:hal:wpspec:hal-04615364
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-04615364v2
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