Simone Maria Bonin () and Andrei Gorshkov ()
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Simone Maria Bonin: Danmarks Nationalbank and Aarhus University
Andrei Gorshkov: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Abstract: We study the transmission of firm-specific export shocks through labor markets, examining how these shocks influence workers’ wages at competing firms via labor market competition. Using rich Danish administrative data, a flexible, empirically driven definition of workers’ outside options, and an identification strategy based on world import demand shocks, we show that both own-firm and competitor export shocks raise incumbent workers’ wages. These export-driven shocks also trigger competitive worker reallocation, as expanding exporters poach workers from other firms. The results indicate spillover effects of export shocks extending to non-exporting firms.
Keywords: labour market competition; export shocks; worker outside options
Language: English
65 pages, September 8, 2026
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wp-2026-16-competing...rm-export-shocks.pdfFull text
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