Upstream and Downstream Worker Mobility Along the Supply Chain

Lajos Szabó, Álmos Telegdy () and András Borsos ()
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Álmos Telegdy: Corvinus University of Budapest
András Borsos: Magyar Nemzeti Bank (the Central Bank of Hungary), Complexity Science Hub Vienna, Institute for New Economic Thinking, University of Oxford

No 2026/4, MNB Working Papers from Magyar Nemzeti Bank (Central Bank of Hungary)

Abstract: This paper examines how interfirm trade relationships shape job-to-job mobility along domestic supply chains. Using Hungarian administrative data of firm-to-firm transactions and matched employer-employee records from 2015–2022, we estimate event-study models with dyadic fixed effects and matched non-trading controls. Trade roughly doubles worker mobility between partners, with larger effects for pairs characterized by high trade shares, and when the partner has a high wage, is a superstar, or growing. Downstream mobility always exceeds upstream mobility. We find no consistent differences between high- and low-skill mobility, and mobility along supply chains does not generate systematically higher wage growth.

Keywords: Production Network; Interfirm Worker Mobility; Hungary (search for similar items in EconPapers)
JEL-codes: F14 F16 J60 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:wpaper:2026/4

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