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Globalization and Imperfect Labor Market Sorting

På svenska

Author

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

Summary, in English

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.

Publishing year

2014

Language

English

Pages

177-194

Publication/Series

Journal of International Economics

Volume

94

Issue

2

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics

Keywords

  • Matching
  • Globalization
  • Workers
  • Multinationals
  • International Trade

Status

Published

ISBN/ISSN/Other

  • ISSN: 1873-0353