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Globalization, Recruitments, and Job Mobility

Carl Davidson, Fredrik Heyman (), Steven Matusz, Fredrik Sjöholm () and Susan Chun Zhu
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Carl Davidson: Department of Economics; Michigan State University; East Lansing, MI 48824
Steven Matusz: Department of Economics; Michigan State University; East Lansing, MI 48824
Susan Chun Zhu: Department of Economics; Michigan State University; East Lansing, MI 48824

No 1354, Working Paper Series from Research Institute of Industrial Economics

Abstract: Previous research indicates that exporting firms are willing to pay a premium to poach workers from other exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find that increased openness correlates positively (negatively) with upward (downward) mobility. The effects are strongest for professionals and managers. Hence, our findings provide empirical support for Davidson et al. (2020).

Keywords: Globalization; Export; Job-Mobility; Recruitments (search for similar items in EconPapers)
JEL-codes: F16 F66 J60 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2020-09-14
New Economics Papers: this item is included in nep-int and nep-lab
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