American Economic Review Vol. 102 No. 3 2012

Liberalized Trade and Worker-Firm Matching

Carl Davidson¹; Fredrik Heyman²; Steven J. Matusz¹; Fredrik Sjöholm³; Susan Chun Zhu¹

¹ Department of Economics, Michigan State University, East Lansing, MI 48864. · ² Research Institute of Industrial Economics, P.O. Box 55665, SE-102 15 Stockholm, Sweden. · ³ Department of Economics, Lund University, P.O. Box 7080, SE-22007 Lund, Sweden, and Research Institute of Industrial Economics.

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 include all firms with at least 20 employees. Our findings strongly support the theoretical predictions.

DOI

10.1257/aer.102.3.429

Volume

102

Issue

3

Pages

429-434

Language

en

Sources

bibtex:phds-export.bib crossref openalex

Cite

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