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Globalization and Imperfect Labor Market Sorting

Davidson, Carl; Heyman, Fredrik LU ; Matusz, Steven; Sjöholm, Fredrik LU and Zhu, Susan LU (2014) In Journal of International Economics 94(2). p.177-194
Abstract
This paper focuses on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process. Using matched worker-firm data from Sweden, we find strong evidence that openness improves the matching between workers and firms in industries with greater comparative advantage. This suggests that there may be significant gains from globalization that have not been identified in the past – globalization may improve the efficiency of the matching process in the labor market. These results remain unchanged after adding controls for technical change at the industry level or measures of domestic anti-competitive regulations and product market competition. Our... (More)
This paper focuses on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process. Using matched worker-firm data from Sweden, we find strong evidence that openness improves the matching between workers and firms in industries with greater comparative advantage. This suggests that there may be significant gains from globalization that have not been identified in the past – globalization may improve the efficiency of the matching process in the labor market. These results remain unchanged after adding controls for technical change at the industry level or measures of domestic anti-competitive regulations and product market competition. Our results are also robust to alternative measures of the degree of matching, openness, and the trade status of an industry. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Matching, Globalization, Workers, Multinationals, International Trade
in
Journal of International Economics
volume
94
issue
2
pages
177 - 194
publisher
Elsevier
external identifiers
  • wos:000347592000001
  • scopus:84919471270
ISSN
1873-0353
DOI
10.1016/j.jinteco.2014.08.001
language
English
LU publication?
yes
id
2a660d47-3b69-4dc3-b458-5e03b6daddf6 (old id 4584195)
date added to LUP
2014-08-05 11:01:34
date last changed
2017-11-12 03:10:21
@article{2a660d47-3b69-4dc3-b458-5e03b6daddf6,
  abstract     = {This paper focuses on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process. Using matched worker-firm data from Sweden, we find strong evidence that openness improves the matching between workers and firms in industries with greater comparative advantage. This suggests that there may be significant gains from globalization that have not been identified in the past – globalization may improve the efficiency of the matching process in the labor market. These results remain unchanged after adding controls for technical change at the industry level or measures of domestic anti-competitive regulations and product market competition. Our results are also robust to alternative measures of the degree of matching, openness, and the trade status of an industry.},
  author       = {Davidson, Carl and Heyman, Fredrik and Matusz, Steven and Sjöholm, Fredrik and Zhu, Susan},
  issn         = {1873-0353},
  keyword      = {Matching,Globalization,Workers,Multinationals,International Trade},
  language     = {eng},
  number       = {2},
  pages        = {177--194},
  publisher    = {Elsevier},
  series       = {Journal of International Economics},
  title        = {Globalization and Imperfect Labor Market Sorting},
  url          = {http://dx.doi.org/10.1016/j.jinteco.2014.08.001},
  volume       = {94},
  year         = {2014},
}