Productivity Gains from Worker Mobility and Their Distribution between Workers and Firms

69 Pages Posted: 26 Jul 2012  

Andrey Stoyanov

York University

Nick Zubanov

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: April 30, 2012

Abstract

Using data from the universe of Danish manufacturing firms and workers over the period 1995-2007, we estimate output gains linked to productivity spillovers through worker mobility, and calculate the shares in these gains accrued to firms, to the workers who bring spillovers, and to the rest of the workers. Applying our results to the manufacturing sector as a whole, the total output gains average at 0.16% per year, of which 80% is retained by the firms, 15% by the rest of the workers, and only 5% goes to the workers who bring spillovers. We therefore conclude that output gains through worker mobility are largely a positive externality for hiring firms.

Keywords: wages, matched employer-employee data, productivity spillovers, worker mobility

JEL Classification: J31, D24, J60

Suggested Citation

Stoyanov, Andrey and Zubanov, Nick, Productivity Gains from Worker Mobility and Their Distribution between Workers and Firms (April 30, 2012). ERIM Report Series Reference No. ERS-2012-009-STR. Available at SSRN: https://ssrn.com/abstract=2117714

Andrey Stoyanov (Contact Author)

York University

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Nick Zubanov

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

HOME PAGE: http://www.eur.nl/ese/english/about_ese/staff/profiel_mis/10636/

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