The Effect of Learning by Hiring on Productivity

Pierpaolo Parrotta and Dario Pozzoli ()

No 09-11, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: This work studies the phenomenon of inter- rm labor mobility as potential channel of knowledge transfer. Using data from the Danish employer-employee register, covering the period 1995-2005, it investigates how the knowledge embed- ded into recruited workers, coming from other rms, contributes to the process of knowledge diusion and boosts rms productivity. Speci cally, estimating both parametric (Cobb-Douglas) and semi-parametric production functions (Olley and Pakes, 1996; Levinsohn and Petrin, 2003), the impact of recruited technicians and highly educated workers on total factor productivity at the rm level is found to be signi cantly positive. A matching analysis, which allows for contin- uous treatment eect evaluation (Hirano and Imbens, 2004), corroborates this nding.

Keywords: Labour mobility; Total factor productivity; Generalized propensity score (search for similar items in EconPapers)
JEL-codes: C23 J33 J38 J51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-lab
Date: 2009-07-22

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Persistent link: http://EconPapers.repec.org/RePEc:hhs:aareco:2009_011

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