The effects of workforce composition, labor turnover, and the qualities of entering and exiting workers on productivity growth
This study identifies and analyzes the effects of firms’ workforce composition, labor turnover, and the qualities of entering and exiting employees on consequent changes in their productivity. Using register data provided by Statistics Netherlands, we examine the productivity dynamics of Dutch manufacturing firms between the years 2002 and 2005. The regression results illustrate that changes in firm productivity are not only determined by the composition of the firm’s current workforce and the degree of labor turnover, but also by the characteristics of the workers who enter and exit the firm. Firms benefit from the inflow of employees previously employed with other firms in the same industry, and with highly productive firms, whereas the inflow of workers from non-employment has a negative effect on their new employers’ productivity growth. Furthermore, the outflow of workers into non-employment, and to highly productive firms positively affects their old employers’ productivity growth, while the exit of workers who leave for firms in the same industry, and of those who simultaneously relocate (across long distances) has a negative effect.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graves, Philip E. & Linneman, Peter D., 1979. "Household migration: Theoretical and empirical results," Journal of Urban Economics, Elsevier, vol. 6(3), pages 383-404, July.
- Christian Grund & Niels Westergaard-Nielsen, 2008.
"Age structure of the workforce and firm performance,"
International Journal of Manpower,
Emerald Group Publishing, vol. 29(5), pages 410-422, September.
- Grund, Christian & Westergård-Nielsen, Niels, 2005. "Age Structure of the Workforce and Firm Performance," Working Papers 05-10, University of Aarhus, Aarhus School of Business, Department of Economics.
- Grund, Christian & Westergård-Nielsen, Niels C., 2005. "Age Structure of the Workforce and Firm Performance," IZA Discussion Papers 1816, Institute for the Study of Labor (IZA).
- Ron Boschma & Rikard Eriksson & Urban Lindgren, 2009.
"How does labour mobility affect the performance of plants? The importance of relatedness and geographical proximity,"
Journal of Economic Geography,
Oxford University Press, vol. 9(2), pages 169-190, March.
- Ron Boschma & R. Eriksson & U. Lindgren, 2008. "How does Labour Mobility affect the Performance of Plants? The importance of relatedness and geographical proximity," DRUID Working Papers 08-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Benjamin Campbell & Martin Ganco & April Franco & Rajshree Agarwal, 2009. "Who Leaves, Where to, and Why Worrry? Employee Mobility, Employee Entrepreneurship, and Effects on Source Firm Performance," Working Papers 09-32, Center for Economic Studies, U.S. Census Bureau.
- Addison, John T. & Belfield, Clive R., 2007.
"Unions, training and firm performance,"
Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research,
Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(4), pages 361-381.
- John E. Ettlie, 1980. "Manpower Flows and the Innovation Process," Management Science, INFORMS, vol. 26(11), pages 1086-1095, November.
- BÃ¶rsch-Supan, Axel & Weiss, Matthias, 2011.
"Productivity and age: Evidence from work teams at the assembly line,"
MEA discussion paper series
07148, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Weiss M. & B?rsch-Supan A., 2013. "Productivity and age: Evidence from work teams at the assembly line," Research Memorandum 029, Maastricht University, Graduate School of Business and Economics (GSBE).
- Weiss, Matthias & Börsch-Supan, Axel, 2011. "Productivity and age: Evidence from work teams at the assembly line," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48719, Verein für Socialpolitik / German Economic Association.
- Weiss M. & Börsch-Supan A., 2013. "Productivity and age: Evidence from work teams at the assembly line," ROA Research Memorandum 009, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomaki, 2000.
"The Roles of Employer and Employee Characteristics for Plant Productivity,"
Econometric Society World Congress 2000 Contributed Papers
1349, Econometric Society.
- Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomäki, 2004. "The Roles of Employer and Employee Characteristics for Plant Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 249-276, May.
- Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomaki, 2005. "Worker turnover and productivity growth," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 395-398.
- Alexander Vogel & Joachim Wagner, 2010.
"Higher productivity in importing German manufacturing firms: self-selection, learning from importing, or both?,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 145(4), pages 641-665, January.
- Alexander Vogel & Joachim Wagner, 2008. "Higher Productivity in Importing German Manufacturing Firms: Self-selection, Learning from Importing, or Both?," Working Paper Series in Economics 106, University of Lüneburg, Institute of Economics.
- Vogel, Alexander & Wagner, Joachim, 2008. "Higher Productivity in Importing German Manufacturing Firms: Self-Selection, Learning from Importing, or Both?," IZA Discussion Papers 3854, Institute for the Study of Labor (IZA).
- Irene Bertschek & Jenny Meyer, 2009.
"Do Older Workers Lower IT-Enabled Productivity? Firm-Level Evidence from Germany,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(2-3), pages 327-342, June.
- Bertschek, Irene & Meyer, Jenny, 2008. "Do Older Workers Lower IT-Enabled Productivity? Firm-Level Evidence from Germany," ZEW Discussion Papers 08-129, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Irene Bertschek & Jenny Meyer, 2008. "Do Older Workers Lower IT-Enabled Productivity? Firm-Level Evidence from Germany," DRUID Working Papers 08-17, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Julia I. Lane & John C. Haltiwanger & James Spletzer, 1999. "Productivity Differences across Employers: The Roles of Employer Size, Age, and Human Capital," American Economic Review, American Economic Association, vol. 89(2), pages 94-98, May.
- Mendes, Rute & van den Berg, Gerard J. & Lindeboom, Maarten, 2007.
"An Empirical Assessment of Assortative Matching in the Labor Market,"
IZA Discussion Papers
3053, Institute for the Study of Labor (IZA).
- Mendes, Rute & van den Berg, Gerard J. & Lindeboom, Maarten, 2010. "An empirical assessment of assortative matching in the labor market," Labour Economics, Elsevier, vol. 17(6), pages 919-929, December.
- Rute Mendes & Gerard J. van den Berg & Maarten Lindeboom, 2007. "An Empirical Assessment of Assortative Matching in the Labor Market," Carlo Alberto Notebooks 62, Collegio Carlo Alberto.
- Mendes, Rute & van den Berg, Gerard J & Lindeboom, Maarten, 2007. "An empirical assessment of assortative matching in the labor market," Working Paper Series 2007:30, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- repec:iab:iabzaf:v:40:i:4:p:361-381 is not listed on IDEAS
- Blakemore, Arthur E & Hoffman, Dennis L, 1989. "Seniority Rules and Productivity: An Empirical Test," Economica, London School of Economics and Political Science, vol. 56(223), pages 359-71, August.
- Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
- Lutz Schneider, 2007. "Zu alt für einen Wechsel? Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1, Halle Institute for Economic Research.
- Haskel, Jonathan, Sonia Pereira, 2003. "Skills and productivity in the UK using matched establishment and worker data," Royal Economic Society Annual Conference 2003 100, Royal Economic Society.
- Jones, Patricia, 2001. "Are educated workers really more productive?," Journal of Development Economics, Elsevier, vol. 64(1), pages 57-79, February.
- Clark, William A. V. & Huang, Youqin & Withers, Suzanne, 2003. "Does commuting distance matter?: Commuting tolerance and residential change," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 199-221, March.
- Chen, Yong & Rosenthal, Stuart S., 2008. "Local amenities and life-cycle migration: Do people move for jobs or fun?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 519-537, November.
- Bingley, Paul & Westergaard-Nielsen, Niels, 2004. "Personnel policy and profit," Journal of Business Research, Elsevier, vol. 57(5), pages 557-563, May.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25844. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.