Labor market effects of knowledge spillovers

Bayraktar Sağlam, Bahar
Sayek, Selin
This paper studies the diffusion of technology that occurs from Multinational Enterprises to domestic firms via worker mobility. It concentrates on the wage and unemployment implications of diffusion of knowledge through labor mobility in the local labor market. We construct a search model where the labor mobility is restricted by the existence of binding contracts. Findings of the model reveal that knowledge spillovers through the movement of workers from foreign to local firm lower the firm premium and the skill premium. Further results indicate that technological progress raising the productivity gap between the foreign and the local firm leads to an increase in the unemployment rate, the firm premium and the skill premium.


Information technology, workplace organization and demand for new kinds of skill
Gürsoy, Serkan; Erdil, Erkan; Department of Science and Technology Policy Studies (2003)
This study examines the relations among information technology (IT), workplace organization and the demand for skilled labor. Recently, demand for skilled labor has relatively increased. One of the causes of this great increase is skill- biased technical change. Firms that are intensive users of IT tend to adopt a complementary set of organizational practices that include: decentralization of decision authority and a greater reliance on skill arid human capital. I have explored the affects of IT on skill an...
Foreign direct investment and technology spillovers in the Turkish manufacturing industry
Pamukcu, Mehmet Teoman (IGI Global, 2013-01-01)
Technology spillovers from foreign to domestic firms in emerging economies are considered to be the most important channel through which Foreign Direct Investment (FDI) influence the host economy. Empirical evidence about the existence, magnitude and direction of FDI-related spillovers in these countries is contradictory pointingto the necessity of conducting more econometric studies using firm-level data. We conduct an econometric analysis to assess the impact of FDI-related...
Labor market institutions and industrial performance: an evolutionary study
Kilicaslan, Yilmaz; Taymaz, Erol (2008-08-01)
This study investigates the impact of labor market institutions on industrial performance from a Schumpeterian perspective. We suggest that labor market institutions play a very important role in the process of creative destruction, because they may create an environment that encourages and enforces innovation, and help to reallocate resources, most importantly labor, through swift elimination of weak performers. We specifically look at the effects of the quantity of labor market regulations and inter-indus...
Türk Sanayi İşletmelerinde İleri İmalât Teknolojileri Kullanımı Ve Performansa Etkisi
Bülbül, Hasan; Güles, Hasan K. (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2004-6)
The implementation of advanced manufacturing technologies (AMT) and its relationship with firms’ manufacturing and business performance have been the subject of active research in recent years. However, the findings of almost all studies are based on data collected in developed countries. This study examines investments in AMT and its relationship with firms’ manufacturing and business performance, using survey responses from 28 manufacturing firms in Turkey, a developing country. Four major conclusions are...
Increasing role of services in competitive power and innovativeness of firms and industrial clusters
Eraydın, Ayda (2007-01-01)
The aim of this paper is to discuss the importance of different types of global services for industrial firms and clusters in terms of their economic competitiveness and innovative performance. The theoretical debates argue that globalization, deregulation and the new production organization make it necessary to use global services that are supplied easily with the help of new telecommunication technologies. The existing empirical studies provide some supporting evidence. However, they also indicate that gl...
Citation Formats
B. Bayraktar Sağlam and S. Sayek, “Labor market effects of knowledge spillovers,” ODTÜ Gelişme Dergisi, vol. 37, no. 3, pp. 195–219, 2010, Accessed: 00, 2020. [Online]. Available: