Does Exporting Improve Matching? Evidence from French Employer-Employee Data

Matilde Bombardini, Gianluca Orefice and Maria D. Tito

Working Papers from CEPII research center

Abstract: Does opening a market to international trade affect the pattern of matching between firms and workers? And does the modified sorting pattern affect welfare? This paper answers these questions both theoretically and empirically in three parts. We set up a model of matching between heterogeneous workers and firms where variation in the worker type at the firm level exists in equilibrium only because of the presence of search costs. When firms gain access to the foreign market their revenue potential increases. When stakes are high, matching with the right worker becomes particularly important because deviations from the ideal match quickly reduce the value of the relationship. Hence exporting firms select sets of workers that are less dispersed relative to the average. We then document a novel fact about the hiring decisions of exporting firms versus non-exporting firms in a French matched employer-employee dataset. We construct the type of each worker using both a traditional wage regression and a model-based approach and construct measures of the average

Keywords: Matching; Sorting; Exporting firms (search for similar items in EconPapers)
JEL-codes: F14 F16 F60 (search for similar items in EconPapers)
Date: 2015-06
New Economics Papers: this item is included in nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Does exporting improve matching? Evidence from French employer-employee data (2019)
Working Paper: Does Exporting Improve Matching? Evidence from French Employer-Employee Data (2015)
Working Paper: Does Exporting Improve Matching? Evidence from French Employer-Employee Data (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2015-06

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