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Globalization, Recruitments and Job Mobility

Davidson, Carl ; Heyman, Fredrik LU ; Matusz, Steven ; Sjöholm, Fredrik LU and Zhu, Susan LU (2020) In Working Papers
Abstract
Previous research indicates that exporting firms are willing to pay a premium to poach workers from other exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period... (More)
Previous research indicates that exporting firms are willing to pay a premium to poach workers from other exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find that increased openness correlates positively (negatively) with upward (downward) mobility. The effects are strongest for professionals and managers. Hence, our findings provide empirical support for Davidson et al. (2020). (Less)
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author
; ; ; and
organization
publishing date
type
Working paper
publication status
published
subject
keywords
Globalization, Export, Job-Mobility, Recruitments, F16, F66, J60
in
Working Papers
issue
2020:20
pages
38 pages
language
English
LU publication?
yes
id
c7edce35-fa96-4641-8e4c-e1494d719792
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2020_020.htm
date added to LUP
2020-09-29 09:26:35
date last changed
2020-09-29 09:47:03
@misc{c7edce35-fa96-4641-8e4c-e1494d719792,
  abstract     = {Previous research indicates that exporting firms are willing to pay a premium to poach workers from other exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find that increased openness correlates positively (negatively) with upward (downward) mobility. The effects are strongest for professionals and managers. Hence, our findings provide empirical support for Davidson et al. (2020).},
  author       = {Davidson, Carl and Heyman, Fredrik and Matusz, Steven and Sjöholm, Fredrik and Zhu, Susan},
  language     = {eng},
  month        = {09},
  note         = {Working Paper},
  number       = {2020:20},
  series       = {Working Papers},
  title        = {Globalization, Recruitments and Job Mobility},
  url          = {https://swopec.hhs.se/lunewp/abs/lunewp2020_020.htm},
  year         = {2020},
}