Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210890
Authors: 
Davidson, Carl
Heyman, Fredrik
Matusz, Steven J.
Sjöholm, Fredrik
Zhu, Susan Chun
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper 1249
Abstract: 
Globalization might affect the mix of jobs available in an economy and the rate at which workers gain skills. We develop a model in which firms differ in terms of productivity and skills and use the model to examine how globalization affects the wage distribution and the career path of workers as they move up the jobs ladder. There are two types of skills that determine a worker's productivity in the model: the ability to work with the appropriate technology and the ability to facilitate international commerce. Workers imperfectly acquire these skills on the job. Firms cannot costlessly observe the skills embodied in a worker but can observe each potential recruit's employment history. In equilibrium, firms self-select into groups that use different networks to fill vacancies. Our results indicate that although falling trade costs may result in greater wage inequality, if trade costs are initially high, it can also lead to a wider path up the jobs ladders and less time spent in entry level jobs. The key assumptions and predictions are confirmed in data on recruitments and job mobility in Sweden.
Subjects: 
Job Ladders
Globalization
Wages
Inequality
Export
JEL: 
F10
F20
J30
Document Type: 
Working Paper

Files in This Item:
File
Size
715.77 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.