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Multinationals, competition and productivity spillovers through worker mobility

Author

Listed:
  • Katariina Nilsson Hakkala

    (Aalto University)

  • Alessandro Sembenelli

    (University of Torino)

Abstract

Multinational firms are believed to impact the productivity of domestic firms through worker mobility. Fosfuri et al. (J Int Econ 53:205–222, 2001) suggest that worker mobility and technological spillovers are more likely to materialize when the local and the multinational firm do not compete fiercely in the product market. We assess empirically the importance of the hypothesis by using the Finnish longitudinal employer–employee data. Consistent with the predictions of the model, we find that competition is negatively related to worker mobility but only in high-tech industries where productivity spillovers are present. Thus, our results detail a channel through which competition may negatively affect the productivity of purely domestic firms .

Suggested Citation

  • Katariina Nilsson Hakkala & Alessandro Sembenelli, 2018. "Multinationals, competition and productivity spillovers through worker mobility," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(2), pages 401-426, May.
    • Handle: RePEc:spr:weltar:v:154:y:2018:i:2:d:10.1007_s10290-017-0304-2
    DOI: 10.1007/s10290-017-0304-2
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    2. Simon Falck, 2016. "Foreign-to-domestic labour mobility in Sweden," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(3), pages 111-125, August.

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    More about this item

    Keywords

    Spillovers; Labour mobility; Product market competition; Linked employer–employee data;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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