Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260014 
Year of Publication: 
2011
Series/Report no.: 
Working Paper No. 2011:25
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
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
Subjects: 
Matching
Globalization
Firms
Workers
Multinational Enterprises
International Trade
JEL: 
F14
F16
J20
Document Type: 
Working Paper

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