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Liberalized Trade and Worker-Firm Matching

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Author Info

  • Davidson, Carl

    (Michigan State University)

  • Heyman, Fredrik

    (The Research Institute of Industrial Economics, Sweden)

  • Matusz, Steven

    (Michigan State University)

  • Sjöholm, Fredrik

    ()
    (Department of Economics, Lund University)

  • Zhu, Susan Chun

    (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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File URL: http://project.nek.lu.se/publications/workpap/papers/WP12_3.pdf
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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2012:3.

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Length: 14 pages
Date of creation: 30 Jan 2012
Date of revision:
Handle: RePEc:hhs:lunewp:2012_003

Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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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. Carl Davidson & Fredrik Heyman & Steven Matusz, & Fredrik Sjoholm & Susan Zhu, . "Globalization and Imperfect Labor Market Sorting," Discussion Papers 10/30, University of Nottingham, GEP.
  2. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2009. "Inequality and Unemployment in a Global Economy," CEP Discussion Papers dp0940, Centre for Economic Performance, LSE.
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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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