Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness

Zsolt Csáfordi, Laszlo Lorincz, Balázs Lengyel and Karoly Miklos Kiss ()
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Karoly Miklos Kiss: Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences and University of Pannonia, Faculty of Business and Economics

No 1610, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: What puts productivity spillovers into effect through worker mobility across firms? Productivity difference between the sending and receiving firms have been found to drive these spillovers; while an alternative explanation suggests that labor flows from foreign-owned companies provide productivity gains for the firm. We argue here that skill-relatedness across firms also matters because industry-specific skills are important for organizational learning and production. Hungarian employee-employer linked panel data from 2003-2011 imply that productivity gap rules out the effect of foreign spillovers. Furthermore, we find that flows from skill-related industries outperform the effect of flows from unrelated industries.

Keywords: skill-relatedness network; firm productivity; knowledge spillover; labor mobility; productivity gap; foreign ownership (search for similar items in EconPapers)
JEL-codes: D22 J24 J60 M51 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016-05
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ino, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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