Arbeitspapier

Trade Competition, Technology and Labour Reallocation

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 10034

Classification
Wirtschaft
Trade and Labor Market Interactions
Labor Turnover; Vacancies; Layoffs
Technological Change: Choices and Consequences; Diffusion Processes
Subject
wage inequality
employment dynamics
assortative matching
import competition
technological change

Event
Geistige Schöpfung
(who)
Baziki, Selva B.
Ginja, Rita
Borota Milicevic, Teodora
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Baziki, Selva B.
  • Ginja, Rita
  • Borota Milicevic, Teodora
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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