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Liberalized Trade and Worker-Firm Matching

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Author Info

  • Davidson, Carl

    (Michigan State University)

  • Heyman, Fredrik

    ()
    (Research Institute of Industrial Economics (IFN))

  • Matusz, Steven

    (Michigan State University)

  • Sjöholm, Fredrik

    ()
    (Research Institute of Industrial Economics (IFN))

  • Chun Zhu, Susan

    (Michigan State University)

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 includes all firms with at least 20 employees. Our findings strongly support the theoretical predictions.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 912.

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Length: 13 pages
Date of creation: 03 Apr 2012
Date of revision:
Handle: RePEc:hhs:iuiwop:0912

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Related research

Keywords: Matching; Globalization; Firms; Workers; Multinational Enterprises; International Trade;

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References

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  1. Helpman, Elhanan & Itskhoki, Oleg & Redding, Stephen J., 2009. "Inequality and Unemployment in a Global Economy," CEPR Discussion Papers 7353, C.E.P.R. Discussion Papers.
  2. Carl Davidson & Fredrik Heyman & Steven Matusz, & Fredrik Sjoholm & Susan Zhu, . "Globalization and Imperfect Labor Market Sorting," Discussion Papers 10/30, University of Nottingham, GEP.
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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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