Spillover Effects through Worker Mobility: Evidence from Slovenian SMEs
The paper tests for potential productivity spillovers arising through worker mobility from foreign firms to domestic SMEs, using Slovenian data. Separate analyses were done for the service and manufacturing sector SMEs. I find robust evidence in support of the hypothesis that flows of highly educated workers from foreign firms to domestic SMEs boost total factor productivity growth of domestic service SMEs. There is also some indication that hiring new workers with foreign firm experience in general, regardless of their education, has a positive effect on service SMEs TFP growth. Whether the workers come from a foreign firm operating in the same or different sector seems unimportant. However, these results are not robust.
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