Premium
The effect of learning by hiring on productivity
Author(s) -
Parrotta Pierpaolo,
Pozzoli Dario
Publication year - 2012
Publication title -
the rand journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.687
H-Index - 108
eISSN - 1756-2171
pISSN - 0741-6261
DOI - 10.1111/j.1756-2171.2012.00161.x
Subject(s) - productivity , danish , business , knowledge transfer , knowledge production , labour economics , industrial organization , phenomenon , learning effect , robustness (evolution) , demographic economics , microeconomics , economics , knowledge management , computer science , management , linguistics , philosophy , physics , biochemistry , chemistry , quantum mechanics , gene , macroeconomics
This article focuses on the phenomenon of interfirm labor mobility as a potential channel for knowledge transfer. Using data from the Danish employer‐employee register covering the period 1995–2005, we investigate how knowledge carriers—technicians and highly educated workers recruited from a donor firm—contribute to knowledge diffusion and enhanced productivity in the hiring (recipient) firm. Structural estimation of the hiring firms' production functions shows that the impact of the recruitment of knowledge carriers on a firm's value added is an increase of 1%–2%. Several robustness checks confirm this finding .