Worker poaching in a supply chain: Enemy from within? |
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| Authors: | Evan Barlow Gad Allon Achal Bassamboo |
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| Institution: | 1. Goddard School of Business and Economics, Weber State University, Ogden, UT, USA;2. The Wharton School, University of Pennsylvania, Philadelphia, PA, USA;3. Kellogg School of Management, Northwestern University, Evanston, IL, USA |
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| Abstract: | Worker poaching represents the primary mode by which workers change employers. We examine worker poaching between firms linked in a value chain. We find that, in a value chain, the less productive firm may offer its workers higher wages and poach workers from the more productive firm. We also find that worker flows accomplished via poaching impact supply chain management: (a) the identity of the bottleneck firm may depend on whether poaching is available; (b) poaching between linked firms may benefit both, and (c) the value chain cannot be fully coordinated without controlling wages in the labor market. |
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