Liberalized Trade and Worker-Firm Matching

Carl Davidson; Fredrik Heyman; Steven Matusz; Fredrik Sjöholm; Susan Zhu

doi:10.1257/aer.102.3.429

Liberalized Trade and Worker-Firm Matching

Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm, Susan Zhu

Department of Economics

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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.

Original language	English
Pages (from-to)	429-434
Journal	The American Economic Review
Volume	102
Issue number	3
DOIs	https://doi.org/10.1257/aer.102.3.429
Publication status	Published - 2012

Subject classification (UKÄ)

Economics

Free keywords

Matching
Globalization
Firms
Workers
Multinational Enterprises
International Trade

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10.1257/aer.102.3.429

AER_Sjoholm

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title = "Liberalized Trade and Worker-Firm Matching",

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AB - 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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KW - Firms

KW - Workers

KW - Multinational Enterprises

KW - International Trade

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DO - 10.1257/aer.102.3.429

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Liberalized Trade and Worker-Firm Matching

Abstract

Subject classification (UKÄ)

Free keywords

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