A Theory of Inter-Industry Poaching
نویسنده
چکیده
I study a two-sector model of learning-by-doing with general and sector-speci c human capital. There is a potential e¢ ciency gain from intersectoral turnover when the sectors have di¤erent complementary production costs or learning curves of di¤erent steepness. If workers are liquidity constrained then there is a bias towards increased intersectoral turnover, resulting in socially ine¢ cient career patterns. Depending on technological parameters, excess turnover can result in lower average productivity in one or both sectors. In this setup education can be interpreted as a limiting case of a very low productivity sector; it can crowd out more e¢ cient learning-by-doing when the latter is particularly e¤ective but also capital intensive. (JEL codes D31, J62)
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