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Competing for workers: labor market transmission of firm export

Author

Listed:
  • Bonin, Simone Maria

    (Danmarks Nationalbank and Aarhus University)

  • Gorshkov, Andrei

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

Abstract

We study the transmission of firm-specific export shocks through labor markets, examining how these shocks influence workers’ wages at competing firms via labor market competition. Using rich Danish administrative data, a flexible, empirically driven definition of workers’ outside options, and an identification strategy based on world import demand shocks, we show that both own-firm and competitor export shocks raise incumbent workers’ wages. These export-driven shocks also trigger competitive worker reallocation, as expanding exporters poach workers from other firms. The results indicate spillover effects of export shocks extending to non-exporting firms.

Suggested Citation

  • Bonin, Simone Maria & Gorshkov, Andrei, 2026. "Competing for workers: labor market transmission of firm export," Working Paper Series 2026:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2026_016
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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