Globalization and imperfect labor market sorting

Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu ()

Journal of International Economics, 2014, vol. 94, issue 2, 177-194

Abstract: This paper focuses on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process. Using matched worker–firm data from Sweden, we find strong evidence that openness improves the matching between workers and firms in industries with greater comparative advantage. This suggests that there may be significant gains from globalization that have not been identified in the past — globalization may improve the efficiency of the matching process in the labor market. These results remain unchanged after adding controls for technical change at the industry level or measures of domestic anti-competitive regulations and product market competition. Our results are also robust to alternative measures of the degree of matching, openness, and the trade status of an industry.

Keywords: Matching; Globalization; Workers; Multinationals; International Trade (search for similar items in EconPapers)
JEL-codes: F14 F16 J20 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

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Related works:
Working Paper: Globalization and Imperfect Labor Market Sorting (2011)
Working Paper: Globalization and Imperfect Labor Market Sorting (2010)
Working Paper: Globalization and Imperfect Labor Market Sorting (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:94:y:2014:i:2:p:177-194

DOI: 10.1016/j.jinteco.2014.08.001

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