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The Importance of Labour Mobility for Spillovers across Industries

Author

Listed:
  • Neil Foster-McGregor

    (The Vienna Institute for International Economic Studies, wiiw)

  • Johannes Pöschl

Abstract

This paper addresses the link between productivity and labour mobility. The hypothesis tested in the paper is that technology is transmitted across industries through the movement of skilled workers embodying human capital. The embodied knowledge is then diffused within the new environment creating spillovers and leading to productivity improvements. A theoretical framework is presented wherein productivity growth is modelled through knowledge acquisition with respect to labour mobility. The empirical estimates confirm the existence of positive cross-sectoral knowledge spillovers and indicate that labour mobility has beneficial effects on industry productivity. Due to the fact that labour mobility is closely linked to input-output relations this finding provides evidence suggesting that part of the estimated productivity effects of domestic rent spillovers are in fact due to knowledge spillovers resulting from labour mobility.

Suggested Citation

  • Neil Foster-McGregor & Johannes Pöschl, 2009. "The Importance of Labour Mobility for Spillovers across Industries," wiiw Working Papers 58, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:58
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    References listed on IDEAS

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    Cited by:

    1. Battisti, Michele & Gatto, Massimo Del & Parmeter, Christopher F., 2022. "Skill-biased technical change and labor market inefficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).

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    More about this item

    Keywords

    knowledge spillovers; labour mobility; productivity; manufacturing; industry; human capital; growth;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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