Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1354: Globalization, Recruitments, and Job Mobility

Carl Davidson, Fredrik Heyman (), Steven Matusz, Fredrik Sjöholm () and Susan Chun Zhu
Additional contact information
Carl Davidson: Department of Economics; Michigan State University; East Lansing, MI 48824
Fredrik Heyman: Research Institute of Industrial Economics (IFN), Postal: and Department of Economics, Lund University
Steven Matusz: Department of Economics; Michigan State University; East Lansing, MI 48824
Fredrik Sjöholm: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Susan Chun Zhu: Department of Economics; Michigan State University; East Lansing, MI 48824

Abstract: Previous research indicates that firms pay a premium to poach workers from exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only the domestic market. Moreover, increased openness might lead to higher job-to-job mobility if more globalization raises both the share of exporters and the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find some suggestive evidence that increased openness correlates positively with upward mobility for occupations that play a major role in international commerce, such as professionals and managers.

Keywords: Globalization; Export; Job-Mobility; Recruitments

JEL-codes: F16; F66; J60

Language: English

46 pages, First version: September 14, 2020. Revised: June 9, 2022.

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