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Globalization, Recruitments, and Job Mobility

Author

Listed:
  • Davidson, Carl

    (Department of Economics; Michigan State University; East Lansing, MI 48824)

  • Heyman, Fredrik

    (Research Institute of Industrial Economics (IFN))

  • Matusz, Steven

    (Department of Economics; Michigan State University; East Lansing, MI 48824)

  • Sjöholm, Fredrik

    (Research Institute of Industrial Economics (IFN))

  • Chun Zhu, Susan

    (Department of Economics; Michigan State University; East Lansing, MI 48824)

Abstract

Previous research indicates that firms pay a premium to poach workers from exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only the domestic market. Moreover, increased openness might lead to higher job-to-job mobility if more globalization raises both the share of exporters and the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find some suggestive evidence that increased openness correlates positively with upward mobility for occupations that play a major role in international commerce, such as professionals and managers.

Suggested Citation

  • Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2020. "Globalization, Recruitments, and Job Mobility," Working Paper Series 1354, Research Institute of Industrial Economics, revised 09 Jun 2022.
  • Handle: RePEc:hhs:iuiwop:1354
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    References listed on IDEAS

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    Cited by:

    1. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2022. "From Local to Global: How Foreign Acquisitions Reshape Job Mobility," Working Paper Series 1453, Research Institute of Industrial Economics, revised 25 Nov 2025.
    2. Lavery, Paul & Spaliara, Marina-Eliza & Görg, Holger, 2024. "Private equity buyouts & firm exporting in crisis periods: Exploring a new channel," Open Access Publications from Kiel Institute for the World Economy 306864, Kiel Institute for the World Economy (IfW Kiel).
    3. Paul Lavery & Marina Spaliara & Holger Görg, 2024. "Private equity buyouts & firm exporting in crisis periods: Exploring a new channel," Working Papers 2024_09, Business School - Economics, University of Glasgow.

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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