Liberalized Trade and Worker-Firm Matching

14 Pages Posted: 26 Apr 2012

See all articles by Carl Davidson

Carl Davidson

Michigan State University - Department of Economics

Fredrik Heyman

Research Institute of Industrial Economics (IFN)

Steven J. Matusz

Michigan State University - Department of Economics

Fredrik Sjöholm

Lund University School of Economics and Management; Research Institute of Industrial Economics (IFN)

Susan Chun Zhu

Michigan State University - Department of Economics

Date Written: April 24, 2012

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 includes all firms with at least 20 employees. Our findings strongly support the theoretical predictions.

Keywords: Matching, Globalization, Firms, Workers, Multinational Enterprises, International Trade

JEL Classification: F14, F16, J20

Suggested Citation

Davidson, Carl and Heyman, Fredrik and Matusz, Steven J. and Sjöholm, Fredrik and Chun Zhu, Susan, Liberalized Trade and Worker-Firm Matching (April 24, 2012). IFN Working Paper No. 912. Available at SSRN: https://ssrn.com/abstract=2045520 or http://dx.doi.org/10.2139/ssrn.2045520

Carl Davidson

Michigan State University - Department of Economics ( email )

25 C Marshall-Adams Hall
East Lansing, MI 48824
United States
517-355-7756 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://www.msu.edu/~ec/faculty/davidson/davidson.html

Fredrik Heyman (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se

Steven J. Matusz

Michigan State University - Department of Economics ( email )

Department of Economics
486 West Circle Drive
East Lansing, MI 48824
United States
517-353-8719 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://econ.msu.edu/faculty/matusz/index.php

Fredrik Sjöholm

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Susan Chun Zhu

Michigan State University - Department of Economics ( email )

214 Marshall Hall
East Lansing, MI 48824
United States
517-355-9647 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://www.msu.edu/~ec/faculty/zhu/zhu.html

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