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Is it positive or negative that employees have a long tenure with the same company?
OECD countries differ widely in terms of employees’ average tenure with the same company (ranging from 6. 7 years in the Unites States to 10.9 years in Japan). There are two possible views on the effects of a long tenure with the same company : It increases the human capital of employees, particularly the human capital that is specific to the company, and therefore increases economic efficiency; It reduces employee mobility, slows the mobility of employees towards more productive jobs, and therefore reduces productivity gains and economic efficiency. Comparative analysis of OECD countries shows that the second view is the correct one: a long tenure with the same company reduces productivity gains and the employment rate.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
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