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Liberalized Trade and Worker-Firm Matching

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Author Info

  • Carl Davidson
  • Fredrik Heyman
  • Steven Matusz
  • Fredrik Sjoholm
  • Susan Chun Zhu

Abstract

Recent theoretical analysis suggests that a reduction in the cost of exporting increases the degree of assortative matching between workers and firms in export-oriented industries. Changes that reduce the cost of imports have an ambiguous impact on matching. We combine detailed Swedish matched worker-firm data from 1995-2005 with tariff data to test these hypotheses. The data cover 94 sectors subject to international competition and include all firms with at least 20 employees. Our findings strongly support the theoretical predictions.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.429
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 3 (May)
Pages: 429-34

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:429-34

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  1. Elhanan Helpman & Oleg Itshoki & Stephen Redding, 2009. "Inequality and unemployment in a global economy," LSE Research Online Documents on Economics 25501, London School of Economics and Political Science, LSE Library.
  2. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2010. "Globalization and Imperfect Labor Market Sorting," Working Paper Series 856, Research Institute of Industrial Economics.
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Cited by:
  1. Inga Heiland & Wilhelm Kohler, 2013. "Heterogeneous Workers, Trade, and Migration," CESifo Working Paper Series 4387, CESifo Group Munich.

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