Who Leaves, Where to, and Why Worrry? Employee Mobility, Employee Entrepreneurship, and Effects on Source Firm Performance

Benjamin Campbell, Martin Ganco, April Franco and Rajshree Agarwal

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: We theorize that differences in human assets’ ability to generate value are linked to exit decisions and their effects on firm performance. Using linked employee-employer data from the U.S. Census Bureau on legal services, we find that employees with higher earnings are less likely to leave relative to employees with lower earnings, but if they do leave, they are more likely to move to a spin-out instead of an incumbent firm. Employee entrepreneurship has a larger adverse impact on source firm performance than moves to established firms, even controlling for observable employee quality. Findings suggest that the transfer of human capital, complementary assets, and opportunities all affect mobility decisions and their impact on source firms.

Pages: 46 pages
Date: 2009-09
New Economics Papers: this item is included in nep-bec, nep-ent, nep-hrm, nep-lab, nep-mic, nep-sbm and nep-ure
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Citations: View citations in EconPapers (9)

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https://www2.census.gov/ces/wp/2009/CES-WP-09-32.pdf First version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:09-32

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