Multinationals, competition and productivity spillovers through worker mobility

Katariina Nilsson Hakkala and Alessandro Sembenelli

Review of World Economics (Weltwirtschaftliches Archiv), 2018, vol. 154, issue 2, No 8, 426 pages

Abstract: Abstract Multinational firms are believed to impact the productivity of domestic firms through worker mobility. Fosfuri et al. (J Int Econ 53:205–222, 2001) suggest that worker mobility and technological spillovers are more likely to materialize when the local and the multinational firm do not compete fiercely in the product market. We assess empirically the importance of the hypothesis by using the Finnish longitudinal employer–employee data. Consistent with the predictions of the model, we find that competition is negatively related to worker mobility but only in high-tech industries where productivity spillovers are present. Thus, our results detail a channel through which competition may negatively affect the productivity of purely domestic firms .

Keywords: Spillovers; Labour mobility; Product market competition; Linked employer–employee data (search for similar items in EconPapers)
JEL-codes: D22 D24 F23 J62 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Working Paper: Multinationals, Competition and Productivity Spillovers through Worker Mobility (2014)
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DOI: 10.1007/s10290-017-0304-2

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