Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2026:16: Competing for workers: labor market transmission of firm export

Simone Maria Bonin () and Andrei Gorshkov ()
Additional contact information
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

JEL-codes: F16; J23; J31; J63

Language: English

65 pages, September 8, 2026

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