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Trade Competition, Technology and Labour Reallocation

Selva Bahar Baziki, Rita Ginja () and Teodora Borota Milicevic
Additional contact information
Teodora Borota Milicevic: Uppsala University

No 10034, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper provides new evidence on the reallocation of workers across firms and industries with different technologies in response to increased import competition from developing countries. Using employer-employee matched data for the Swedish manufacturing sector, we find increased assortative matching of workers in ICT (information and communication technologies) intensive industries, that is, high(low)-wage workers sort into high(low)-wage firms. Industries with low ICT intensity do not exhibit these sorting patterns. A labour market matching model explains the increased assortative matching in ICT intensive industries in response to stronger import competition through an increase in the relative demand for qualified workers.

Keywords: wage inequality; employment dynamics; assortative matching; import competition; technological change (search for similar items in EconPapers)
JEL-codes: F16 J63 O33 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2016-07
New Economics Papers: this item is included in nep-ino, nep-int, nep-lab and nep-tid
References: View references in EconPapers View complete reference list from CitEc
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Related works:
Working Paper: Trade Competition, Technology and Labor Re-allocation (2015) Downloads
Working Paper: Trade Competition, Technology and Labor Re-allocation (2015) Downloads
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