Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2020:20: 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, Postal: East Lansing, MI 48824, USA
Fredrik Heyman: Research Institute of Industrial Economics (IFN), Postal: Stockholm, Sweden
Steven Matusz: Department of Economics, Michigan State University, Postal: East Lansing, MI 48824, USA
Fredrik Sjöholm: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Susan Chun Zhu: Department of Economics, Michigan State University, Postal: East Lansing, MI 48824, USA

Abstract: Previous research indicates that exporting firms are willing to pay a premium to poach workers from other 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 their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as 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 that increased openness correlates positively (negatively) with upward (downward) mobility. The effects are strongest for professionals and managers. Hence, our findings provide empirical support for Davidson et al. (2020).

Keywords: Globalization; Export; Job-Mobility; Recruitments

JEL-codes: F16; F66; J60

38 pages, September 11, 2020

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