GEP Seminar: Carl Davidson (Michigan State University)

A joint presentation with Susan Zhu (Michigan State University)

Title:  Globalization, recruitment and job mobility

Abstract: Previous research indicates that exporting firms are willing to pay a premium to poach workers from other exporting firms if experience working for an internationally engaged firm reduces trade costs.  Since international experience is less valuable to non-exporters, we would expect to see differences in recruitments between firms that are internationally engaged and those that serve only their domestic market. Moreover, as emphasized in Davidson et al. (2020), increased openness might lead to higher job-to-job mobility if increased globalization increases both the share of exporters as well as the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer-employee data for the period 1997-2013, we do find systematic differences between the way exporters and non-exporters recruit workers: exporters have a relatively high share of recruitments from other exporters as hypothesized. We also find that increased openness correlates positively (negatively) with upward (downward) mobility. The effects are strongest for professionals and managers. Hence, our findings provide empirical support for Davidson et al. (2020).