Horse industry study reveals how worker expertise drives firm profits
Swedish researchers found that hiring employees with specialized knowledge directly boosts productivity in equine businesses, but the effect varies sharply by business type. The findings suggest firms and policymakers should rethink hiring and training strategies—expertise matters far more in racing operations than breeding.
Originaltitel: The role of specialized knowledge and 'know-how' for firm productivity: Evidence from the equine sector
<p>Using matched employer-employee data, we examine how workforce knowledge characteristics relate to firm productivity in the equine sector. Using panel data on Swedish equine firms from 2010 to 2022, we construct measures of workforce composition, including occupation-specific education, accumulated work experience and knowledge diversity. The results show that access to occupation-specific human capital is positively associated with productivity, with substantial heterogeneity across firms. Knowledge effects are stronger among firms specializing in horse racing than in breeding, highlighting differences in the role of human capital across production orientations. The findings have implications for policy and firms' investment decisions.</p>