JOB HOPPING, KNOWLEDGE SPILLOVERS, AND REGIONAL RETURNS TO INFORMATION TECHNOLOGY INVESTMENTS

We show that substantial regional differences in returns to information technology (IT) investments by US firms are attributable in part to knowledge spillovers generated by the movements of IT workers among firms. We use a newly developed source of employee micro-data with employer identifiers and location information to model IT workers’ mobility patterns. Access to an external IT pool one standard deviation larger than the mean is associated with a 20% increase in the output elasticity of own IT investment. We discuss implications for managers and for policy makers

Inter-Industry IT Spillovers After the Dot-Com Bust

This paper uses a novel source of fine-grained data on IT labor mobility to test the hypothesis that patterns of productivity growth observed after the dot-com bust can be partially explained by spillovers of e-commerce know-how from IT industries to other industries. The analysis treats the timing and geographic concentration of dot-com layoffs as a source of exogenous variation in the effects of the bust on different IT labor markets. IT-enabled productivity growth from 2001 onwards was faster for IT-using firms that experienced large changes in the skill content of the IT labor pool as a result of the dot-com bust. The evidence suggests that some of the social returns from dot-com IT investments were captured by IT-using industries in the same regions after the bust. Implications for the current wave of investment in data analytics and future productivity growth patterns are discussed

How does Labour Mobility affect the Performance of Plants? The importance of relatedness and geographical proximity

This paper analyses the impact of skill portfolios and labour mobility on plant performance by means of a unique database that connects attributes of individuals to features of plants for the whole Swedish economy. We found that a portfolio of related competences at the plant level increases significantly productivity growth of plants, in contrast to plant portfolios consisting of either similar or unrelated competences. Based on the analysis of 101,093 job moves, we found that inflows of skills that are related to the existing knowledge base of the plant had a positive effect on plant performance, while the inflow of new employees with skills that are already present in the plant had a negative impact. Our analyses also show that geographical proximity influences the effect of different skill inflows. Inflows of unrelated skills only contribute positively to plant performance when these are recruited in the same region. Labour mobility across regions only has a positive effect on productivity growth of plants when this concerns new employees with related skills.Labour mobility; related variety; skill portfolio; plant performance; geographical proximi

Connecting Labor Market Institutions, Corporate Demography, and Human Resource Management Practices

With the growing attention to entrepreneurship as an engine of job creation and economic development, it is important for social scientists who are broadly interested in labor market and employment topics to focus attention on new firms and the policies and practices that surround them. The authors argue that the next generation of scholarship should pay particular attention to labor market institutions, the ecosystem of existing employers, and the human resource management practices that provide the strategic context for entrepreneurs and shape the career opportunities for workers. Remarkable variation occurs across space and time in the prevalence and performance of entrepreneurs. There are also many open questions as to the antecedents and consequences of entrepreneurship, for entrepreneurs, their communities, and their employees. The availability of new administrative data across many countries will allow for comparative cross-national studies and will provide opportunities to bring qualitative and mixed-method approaches to entrepreneurial labor market studies. This introduction and the articles in this special issue offer a path forward

Is Inter-Firm Labor Mobility a Channel of Knowledge spillovers? Evidence from a Linked Employer-Employee Panel

An employer-employee panel is used to study whether the movement of workers across firms is a channel of unintended diffusion of R&D-generated knowledge. Somewhat surprisingly, hiring workers from others' R&D labs to one's own does not seem to be a significant spillover channel. Hiring workers previously in R&D to one's non-R&D activities, however, boosts both productivity and profitability. This is interpreted as evidence that these workers transmit knowledge that can be readily copied and implemented without much additional R&D effort.Labor Mobility, R&D Spillovers, Profitability, Linked Employer-Employee Data

Labour mobility, related variety and the performance of plants: A Swedish study

This paper analyses the impact of skill portfolios and labour mobility on plant performance by means of a unique database that connects attributes of individuals to features of plants for the whole Swedish economy. We found that a portfolio of related competences at the plant level increases significantly productivity growth of plants, in contrast to plant portfolios consisting of either similar or unrelated competences. Based on the analysis of 101,093 job moves, we found that inflows of skills that are related to the existing knowledge base of the plant had a positive effect on plant performance, while the inflow of new employees with skills that are already present in the plant had a negative impact. Our analyses show that inflows of unrelated skills only contribute positively to plant performance when these are recruited in the same region. Labour mobility across regions only has a positive effect on productivity growth of plants when this concerns new employees with related skills.labour mobility, related variety, skill portfolio, plant performance, geographical proximity

Labor Mobility, Social Network Effects, and Innovative Activity

We study the mapping between labor mobility and industrial innovative activity for the population of R&D active Danish firms observed between 1999 and 2004. Our study documents a positive relationship between the number of workers who join a firm and the firm's innovative activity. This relationship is stronger if workers join from innovative firms. We also find evidence for positive feedback from workers who leave for an innovative firm, presumably because the worker who left stays in contact with their former colleagues. This implies that the positive feedback ("social network effects") that has been found by other studies not only exists but even outweighs the disruption and loss of knowledge occurring to the previous employer from the worker leaving. Summing up the effects of joining and leaving workers, we find ample evidence for mobility to be associated with an increase in total innovative activity of the new and the old employer.labor mobility, innovation, social network

Churning of R&D personnel and innovation

This paper explores the role of R&D worker mobility on innovation performance. As one main novelty, we employ churning as a measure for worker mobility. Churning depicts the number of workers which are replaced by new ones. It is a very informative indicator since a firm may be exposed to simultaneous leave and inflow of R&D workers even if the size of R&D employment remains unchanged. Hence, we can separate the effect of replacement from net change in R&D workforce. Our results from estimating various knowledge production functions suggest an inverse u-shaped relationship. The exchange of R&D personnel fosters innovation through inter-firm knowledge spillovers and improved job-match quality up to certain threshold. The point when costs of churning exceed the benefits is reached faster if the R&D knowledge is non-duplicative. --innovation,churning,mobility

Spreading the Word: Geography, Policy and University Knowledge Diffusion

Using new data on citations to university patents and scientific publications, and measures of distance based on Google maps, we study how geography affects university knowledge diffusion. We show that knowledge flows from patents are localized in two respects: they decline sharply with distance up to about 100 miles, and they are strongly constrained by state borders, controlling for distance. While distance also constrains knowledge spillovers from publications, the state border does not. We investigate how the strength of the state border effect varies with university and state characteristics. It is larger for patents from public, as compared to private, universities and this is partly explained by the local development policies of universities. The border effect is larger in states with stronger non-compete laws that affect intra-state labor mobility, and those with greater reliance on in-state educated scientists and engineers. We confirm the impact of non-compete statutes by studying a policy reform in Michigan that introduced such restrictions.knowledge spillovers, diffusion, geography, university technology transfer, patents, scientific publications