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Department of Economics, Lund University 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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