Competing for workers: labor market transmission of firm export

Simone Maria Bonin () and Andrei Gorshkov ()
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Simone Maria Bonin: Danmarks Nationalbank and Aarhus University
Andrei Gorshkov: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

No 2026:16, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We study the transmission of firm-specific export shocks through labor markets, examining how these shocks influence workers’ wages at competing firms via labor market competition. Using rich Danish administrative data, a flexible, empirically driven definition of workers’ outside options, and an identification strategy based on world import demand shocks, we show that both own-firm and competitor export shocks raise incumbent workers’ wages. These export-driven shocks also trigger competitive worker reallocation, as expanding exporters poach workers from other firms. The results indicate spillover effects of export shocks extending to non-exporting firms.

Keywords: labour market competition; export shocks; worker outside options (search for similar items in EconPapers)
JEL-codes: F16 J23 J31 J63 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2026-09-08
New Economics Papers: this item is included in nep-com, nep-eur, nep-iaf, nep-inv, nep-lab and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2026_016

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