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Globalization and Imperfect Labor Market Sorting

Carl Davidson (), Fredrik Heyman (), Steven Matusz (), Fredrik Sjöholm () and Susan Chun Zhu ()

No 2011:25, Working Papers from Lund University, Department of Economics

Abstract: This paper focuses on the ability of the labor market to correctly 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, or the trade status of an industry

Keywords: Matching; Globalization; Firms; Workers; Multinational Enterprises; International Trade (search for similar items in EconPapers)
JEL-codes: F14 F16 J20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-lab and nep-lma
Date: 2011-07-15
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http://project.nek.lu.se/publications/workpap/papers/WP11_25.pdf (application/pdf)

Related works:
Journal Article: Globalization and imperfect labor market sorting (2014) Downloads
Working Paper: Globalization and Imperfect Labor Market Sorting (2010) Downloads
Working Paper: Globalization and Imperfect Labor Market Sorting Downloads
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