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‘Good’ Firms, Worker Flows and Local Productivity

Listed author(s):
  • Michel Serafinelli

    ()

    (Department of Economics, University of Toronto, Canada)

This paper is the first to present direct evidence showing how localized knowledge spillovers arise from workers changing jobs within the same local labor market. Using a unique dataset combining Social Security earnings records and balance sheet information for the Veneto region of Italy, I first identify a set of highly productive firms, then show that hiring workers with experience at these firms significantly increases the productivity of other firms. My findings imply that worker flows explain around 10 percent of the productivity gains experienced by incumbent firms when new highly productive firms are added to a local labor market.

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File URL: http://www.rcfea.org/RePEc/pdf/wp15-29.pdf
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Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 15-29.

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Date of creation: Aug 2015
Handle: RePEc:rim:rimwps:15-29
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