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Trade and jobs: a description of Swedish labor market dynamics

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Abstract

We perform a granular analysis of Swedish labor market dynamics, using matched employer employee and firm level trade data for Sweden over a 15-year period. The employment share in firms that are directly exposed to international trade has decreased, due to a shift in employment towards personal and public services. Analyzing the dynamics, we find that workers in firms that change export status are slightly less likely to obtain the same wage rise as their peers. However, workers that stay in the same job in trading firms are less affected by changes in export and offshoring volumes, with the exception of high-skilled workers in manufacturing firms who face a downward pressure on wages from services offshoring, but higher wages from services exports. Finally, we find that exports and offshoring of goods and services stimulate labor demand. While exports and offshoring of services increase relative demand for skilled workers, exports and offshoring of goods stimulate relative demand for middle and low skilled workers.

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  • Kyvik Nordås, Hildegunn & Lodefalk, Magnus & Tang, Aili, 2019. "Trade and jobs: a description of Swedish labor market dynamics," Working Papers 2019:2, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2019_002
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    5. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    6. John Haltiwanger & Milan Vodopivec, 2003. "Worker flows, job flows and firm wage policies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 253-290, June.
    7. Gomes, Pedro, 2012. "Labour market flows: Facts from the United Kingdom," Labour Economics, Elsevier, vol. 19(2), pages 165-175.
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    Cited by:

    1. Omar Bamieh & Francesco Bripi & Matteo Fiorini, 2022. "Services trade and labor market outcomes: Evidence from Italian firms," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 673-701, August.

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    More about this item

    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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