Labor turnover is a commonly cited mechanism for the transmission of technology from multinational to domestic firms. Using a matched establishment-worker database from Brazil, I present evidence consistent with positive multinational wage spillovers through worker mobility. When workers leave multinationals and are rehired at domestic establishments, continuing-workers' wages increase. To my knowledge, this avenue for wage spillovers has not previously been explored. The paper also investigates where spillovers occur and how they are absorbed to demonstrate heterogeneous impacts. Higher-skilled former multinational workers are better able to transfer information, and higher-skilled incumbent domestic workers are better able to absorb information.

This paper examines the implications of a binary action, binary outcome decision problem for estimating risk. We use data on the invasiveness of biological imports to develop the first comparison of two classical methods—maximum likelihood and Bayesian—against a third, the recently developed maximum utility (MU) approach. MU estimation uniquely takes advantage of the structure of the decision problem, which depends on a local rather than global fit to the model. Extending methods to account for an endogenously stratified sample, we show that the MU approach is less sensitive to specification error and can offer significant economic gains under model uncertainty.