## Worker Mobility and Domestic Production Networks

_IMF Working Papers, September 25, 2020_

## Source details

**Canonical URL:** [Worker Mobility and Domestic Production Networks](https://www.imf.org/en/publications/wp/issues/2020/09/25/worker-mobility-and-domestic-production-networks-49769)

## Other formats

- [Markdown version](/en/publications/wp/issues/2020/09/25/worker-mobility-and-domestic-production-networks-49769/index.md)
- [Structured JSON version](/en/publications/wp/issues/2020/09/25/worker-mobility-and-domestic-production-networks-49769/index.json)
- [Bundle manifest](/en/publications/wp/issues/2020/09/25/worker-mobility-and-domestic-production-networks-49769/bundle-manifest.json)

## Bibliographic details
- Authors: Marvin Cardoza, Francesco Grigoli, Nicola Pierri
- Published: September 25, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513557724.001

---

### Summary findings
- Data on the universe of firm-to-firm transactions for the Dominican Republic, matched with employer-employee records, reveals that about 20 percent of workers who change firms move to a buyer or supplier of their original firm.
- This share is a considerably larger share than would be implied by a random allocation of movers to firms.
- Hiring workers from connected firms (buyers or suppliers) is associated with:
  - higher worker wages,
  - lower job separation rates,
  - faster firm productivity growth,
  - faster coworker wage growth.
- Hiring workers from a supplier is followed by a rising share of purchases from that supplier.

### Mechanisms and interpretation
- Human capital appears easily transferable along the supply chain.
- Human capital accumulated while working at a firm is complementary with the intermediate products/services produced by that firm.
- Buyer-supplier linkages in domestic production networks therefore shape worker flows and generate mutual gains for workers and firms.

### Keywords and subjects
- Subjects: Human capital, International trade, Labor, Labor mobility, Production, Productivity, Trade balance, Wages
- Keywords: buyer-supplier relationship, connected firm, dummy variable, firm pair control, hiring firm, Human capital, Labor mobility, origin firm, production network, Productivity, Trade balance, Wages, worker flow, WP

*Marvin Cardoza, Francesco Grigoli, and Nicola Pierri, September 25, 2020 — IMF Working Paper No. 2020/205.*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2020/english/wpiea2020205-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2020/english/wpiea2020205-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2020/09/25/worker-mobility-and-domestic-production-networks-49769_