Search this site
by Faculty Name
by Publication Type
by Academic Area
HKS Faculty Research
FRC User's Guide
Submit New & Edit Current Publication Citations
Browse Publication Type
Publication Type Results
Rafik Hariri Professor of the Practice of International Political Economy
HKS Faculty Research Working Paper Series
Hausmann, Ricardo, and Frank Neffke. "The Workforce of Pioneer Plants." HKS Faculty Research Working Paper Series and CID Working Paper (RWP16-006 and 310), February 2016.
Is labor mobility important in technological diffusion? We address this question by asking how plants assemble their workforce if they are industry pioneers in a location. By definition, these plants cannot hire local workers with industry experience. Using German social-security data, we find that such plants recruit workers from related industries from more distant regions and local workers from less-related industries. We also show that pioneers leverage a low-cost advantage in unskilled labor to compete with plants that are located in areas where the industry is more prevalent. Finally, whereas research on German reunification has often focused on the effects of east-west migration, we show that the opposite migration facilitated the industrial diversification of eastern Germany by giving access to experienced workers from western Germany.
Copyright © 2017 The President and Fellows of Harvard College