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Upstream and Downstream Worker Mobility Along the Supply Chain

Author

Listed:
  • Lajos Tamás Szabó

    (Magyar Nemzeti Bank (the Central Bank of Hungary))

  • Álmos Telegdy

    (Corvinus University of Budapest)

  • András Borsos

    (Magyar Nemzeti Bank (the Central Bank of Hungary), Complexity Science Hub Vienna, Institute for New Economic Thinking, University of Oxford)

Abstract

This paper examines how interfirm trade relationships shape job-to-job mobility along domestic supply chains. Using Hungarian administrative data of firm-to-firm transactions and matched employer-employee records from 2015–2022, we estimate event-study models with dyadic fixed effects and matched non-trading controls. Trade roughly doubles worker mobility between partners, with larger effects for pairs characterized by high trade shares, and when the partner has a high wage, is a superstar, or growing. Downstream mobility always exceeds upstream mobility. We find no consistent differences between high- and low-skill mobility, and mobility along supply chains does not generate systematically higher wage growth.

Suggested Citation

  • Lajos Tamás Szabó & Álmos Telegdy & András Borsos, 2026. "Upstream and Downstream Worker Mobility Along the Supply Chain," MNB Working Papers 2026/4, Magyar Nemzeti Bank (Central Bank of Hungary).
    • Handle: RePEc:mnb:wpaper:2026/4
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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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