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Good Firms, Worker Flows and Productivity

  • Serafinelli, Michel
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    I present direct evidence on the role of firm-to-firm labor mobility in enhancing the productivity of firms located near highly productive firms. Using matched employer-employee and balance sheet data for the Veneto region of Italy, I identify a set of high-wage firms (HWF) and show they are more productive than other firms. I then show that hiring a worker with HWF experience increases the productivity of other (non-HWF) firms. A simulation indicates that worker flows explain 10-15 percent of the productivity gains experienced by other firms when HWFs in the same industry are added to a local labor market.

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    File URL: http://mpra.ub.uni-muenchen.de/47508/1/MPRA_paper_47508.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47508.

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    Date of creation: 09 Jun 2013
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    Handle: RePEc:pra:mprapa:47508
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