An establishment can improve its productivity by hiring workers from more productive establishments. Then, how important is worker reallocation for aggregate productivity growth? To study this question, I develop a general equilibrium model where knowledge transmits as workers reallocate from...

In this paper we estimate the rate of total factor productivity (TFP) growth in 80 sectors of Brazilian manufacturing industry and use production functions to decompose TFP growth into technological progress and changes in efficiency. We find that growth of TFP was caused, in most sectors, by...