Dance with the One that Brought You? Matching and Sorting in a Global Economy

Philipp Kircher, Elhanan Helpman and Gene Grossman
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Philipp Kircher: LSE

No 900, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: Trade effects the size of firms in the economy differentially. Exporting firms tend to become larger relative to non-exporting firms. This affects different workers in the economy differentially. We develop a two-sided matching model with heterogeneous firms and heterogeneous workers and firm size, and study how the opening to trade effects both firm size and the wage distribution.

Date: 2012
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