Churning and Labor Productivity in Economic Crisis, Differences between Foreign and Domestic Firms
Urmas Varblane and
Eastern European Economics, 2022, vol. 60, issue 2, 113-148
Our analysis of matched employee-employer data from Estonian firms (years 2006–2013) shows that an increase in labor churning is related to a positive change in labor productivity during an economic crisis. During boom years, churning is related to a negative change in labor productivity. Only in services during the crisis did foreign firms have a stronger positive relationship between labor churning and labor productivity changes than domestic firms. However, our analysis at the individual level does not confirm that, during a crisis, foreign firms in services hire more employees with characteristics that have been found to be related to productivity increases.
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Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:60:y:2022:i:2:p:113-148
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