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Liberalized Trade and Worker-Firm Matching

Author

Listed:
  • 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.

Suggested Citation

  • Carl Davidson & Fredrik Heyman & Steven Matusz & Fredrik Sjoholm & Susan Chun Zhu, 2012. "Liberalized Trade and Worker-Firm Matching," American Economic Review, American Economic Association, vol. 102(3), pages 429-434, May.
    • Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:429-34
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.429
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    Cited by:

    1. Magnus Lodefalk & Fredrik Sjöholm & Aili Tang, 2022. "International trade and labour market integration of immigrants," The World Economy, Wiley Blackwell, vol. 45(6), pages 1650-1689, June.
    2. Inga Heiland, 2017. "Five Essays on International Trade, Factor Flows and the Gains from Globalization," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 74, October.
    3. Araújo, Bruno César & Paz, Lourenço S., 2014. "The effects of exporting on wages: An evaluation using the 1999 Brazilian exchange rate devaluation," Journal of Development Economics, Elsevier, vol. 111(C), pages 1-16.
    4. Schroeder, Sarah, 2025. "Exporters, multinationals and residual wage inequality: Evidence and theory," European Economic Review, Elsevier, vol. 173(C).
    5. Gianluca Orefice & Giovanni Peri, 2020. "Immigration and Worker-Firm Matching," Working Papers DT/2020/02, DIAL (Développement, Institutions et Mondialisation).
    6. Heiland, Inga & Kohler, Wilhelm, 2022. "Heterogeneous workers, trade, and migration," European Economic Review, Elsevier, vol. 144(C).
    7. Borrs, Linda & Knauth, Florian, 2021. "Trade, technology, and the channels of wage inequality," European Economic Review, Elsevier, vol. 131(C).
    8. Ronald B. Davies & Arman Mazhikeyev, 2021. "The glass border: Gender and exporting in developing countries," The World Economy, Wiley Blackwell, vol. 44(4), pages 879-903, April.
    9. Matthias Aistleitner & Stephan Puehringer, 2020. "Exploring the trade (policy) narratives in economic elite discourse," ICAE Working Papers 110, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    10. Gyasi, Genevieve, 2020. "The Impact of Trade Agreement Policy on Employment," MPRA Paper 101307, University Library of Munich, Germany.
    11. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    12. Jeff Chan, 2019. "Labour market characteristics and surviving import shocks," The World Economy, Wiley Blackwell, vol. 42(5), pages 1288-1315, May.
    13. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Zhu, Susan Chun, 2014. "Globalization and imperfect labor market sorting," Journal of International Economics, Elsevier, vol. 94(2), pages 177-194.
    14. Bødker, Jonas Ehn & Maibom, Jonas & Vejlin, Rune, 2024. "Decomposing the exporter wage gap: Selection or differential returns?," Labour Economics, Elsevier, vol. 91(C).
    15. Paul Vandenberg, 2017. "Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?," ADBI Working Papers 650, Asian Development Bank Institute.
    16. Matthias Aistleitner & Stephan Puehringer, 2023. "Biased Trade Narratives and Its Influence on Development Studies: A Multi-level Mixed-Method Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1322-1346, December.
    17. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Zhu, Susan Chun, 2017. "Global engagement and the occupational structure of firms," European Economic Review, Elsevier, vol. 100(C), pages 273-292.
    18. Burhan, Nik Ahmad Sufian & Sidek, Abdul Halim & Kurniawan, Yohan & Mohamad, Mohd Rosli, 2014. "Has Globalization Triggered Collective Impact of National Intelligence on Economic Growth?," MPRA Paper 77316, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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