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Knowledge Spillovers through Labour Mobility: An Employer–Employee Analysis

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  • Victoria Castillo
  • Lucas Figal Garone
  • Alessandro Maffioli
  • Sofia Rojo
  • Rodolfo Stucchi

Abstract

Using a 16-year employer–employee panel dataset that contains the entire population of firms and workers in Argentina, this paper provides evidence of the benefits of public support for firm-level innovation for the firms that received support, the workers who were employed by them, and the firms that hired beneficiary workers. The results confirm that participant firms improve their performance and generate valuable productive knowledge, which spills over to workers who directly participated in the program and is diffused through labour mobility to other firms. The worker-level results show that workers exposed to innovation projects receive higher wages. High-skilled workers receive most of the benefits from exposure to innovation, and the wage premium is higher for workers who moved to other firms. At the firm level, the paper provides evidence that hiring workers previously exposed to innovation projects is associated with an increase in firm performance. The findings suggest that labour mobility is an important mechanism for transmitting knowledge between firms.

Suggested Citation

  • Victoria Castillo & Lucas Figal Garone & Alessandro Maffioli & Sofia Rojo & Rodolfo Stucchi, 2020. "Knowledge Spillovers through Labour Mobility: An Employer–Employee Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 56(3), pages 469-488, March.
    • Handle: RePEc:taf:jdevst:v:56:y:2020:i:3:p:469-488
    DOI: 10.1080/00220388.2019.1605057
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    Cited by:

    1. Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro & Stein, Ernesto, 2020. "Public support to R&D, productivity, and spillover effects: Firm-level evidence from Chile," World Development, Elsevier, vol. 130(C).
    2. Kraft, Kornelius & Rammer, Christian, 2023. "Intended and unintended knowledge spillovers in innovation," ZEW Discussion Papers 23-015, ZEW - Leibniz Centre for European Economic Research.
    3. Jie Bai & Panle Jia Barwick & Shengmao Cao & Shanjun Li, 2020. "Quid Pro Quo, Knowledge Spillover, and Industrial Quality Upgrading: Evidence from the Chinese Auto Industry," NBER Working Papers 27644, National Bureau of Economic Research, Inc.
    4. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2023. "Does context matter? Exploring the effects of productive structures on the relationship between innovation and workforce skills’ complementarity," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 1991-2011, June.
    5. Yu Chen & Keyang Li & Qian Zhou & Yuxin Zhang, 2022. "Can Population Mobility Make Cities More Resilient? Evidence from the Analysis of Baidu Migration Big Data in China," IJERPH, MDPI, vol. 20(1), pages 1-25, December.
    6. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2024. "How Do Agglomeration Externalities and Workforce Skills Drive Innovation? Empirical Evidence from Italy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6737-6760, June.
    7. Bernal, Pilar & Carree, Martin & Lokshin, Boris, 2022. "Knowledge spillovers, R&D partnerships and innovation performance," Technovation, Elsevier, vol. 115(C).
    8. Tiange Qi & Yuning Gao & Yongjian Huang, 2024. "A Lucas island model to analyse labour movement choice between cities based on personal characteristics," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    9. Frank Crowley & Declan Jordan, 2022. "Do local start-ups and knowledge spillovers matter for firm-level R&D investment?," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1085-1102, April.
    10. Williams, Allan M. & Rodríguez Sánchez, Isabel, 2024. "Knowledge mobility after tourism entrepreneurial failure: Life after death?," Annals of Tourism Research, Elsevier, vol. 106(C).

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