Working Papers, Department of Economics, Lund University
No 2012:3:
Liberalized Trade and Worker-Firm Matching
Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm ()
and Susan Chun Zhu
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; (follow links to similar papers)
JEL-Codes: F14; F16; J20; (follow links to similar papers)
14 pages, January 30, 2012
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