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Globalization and Imperfect Labor Market Sorting

Författare

  • Carl Davidson
  • Fredrik Heyman
  • Steven Matusz
  • Fredrik Sjöholm
  • Susan Zhu

Summary, in English

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.

Publiceringsår

2014

Språk

Engelska

Sidor

177-194

Publikation/Tidskrift/Serie

Journal of International Economics

Volym

94

Issue

2

Dokumenttyp

Artikel i tidskrift

Förlag

Elsevier

Ämne

  • Economics

Nyckelord

  • Matching
  • Globalization
  • Workers
  • Multinationals
  • International Trade

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 1873-0353