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Liberalized Trade and Worker-Firm Matching

Author

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

Summary, in English

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.

Publishing year

2012

Language

English

Pages

429-434

Publication/Series

The American Economic Review

Volume

102

Issue

3

Document type

Journal article

Publisher

American Economic Association

Topic

  • Economics

Keywords

  • Matching
  • Globalization
  • Firms
  • Workers
  • Multinational Enterprises
  • International Trade

Status

Published

ISBN/ISSN/Other

  • ISSN: 0002-8282