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Abstract
Total factor productivity growth is positively related to the worker inflow rate and negatively related to the worker outflow rate in Finnish manufacturing. The churning rate, which measures separations that lead to replacement hiring, speeds up productivity growth.
Acknowledgements
The authors are grateful to the Academy of Finland for funding (projects 49153 and 50950). The data used in the article are the property of Statistics Finland and can be accessed on site at the research laboratory of the Business Structures Unit of Statistics Finland.