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Liberalized Trade and Worker-Firm Matching

  • 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)

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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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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  1. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2010. "Globalization and Imperfect Labor Market Sorting," Working Paper Series 856, Research Institute of Industrial Economics.
  2. Elhanan Helpman & Oleg Itshoki & Stephen Redding, 2009. "Inequality and unemployment in a global economy," LSE Research Online Documents on Economics 25501, London School of Economics and Political Science, LSE Library.
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