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Globalization, recruitments, and job mobility

Author

Listed:
  • Carl Davidson
  • Fredrik Heyman
  • Steven Matusz
  • Fredrik Sjöholm
  • Susan Chun Zhu

Abstract

Previous research indicates that firms pay a premium to poach workers from exporting firms if experience working for an internationally engaged firm reduces trade costs. Because 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 the domestic market. Moreover, increased openness might lead to higher job‐to‐job mobility if more globalization raises both the share of exporters and the number of workers with skills that make them attractive for other exporters. Using linked Swedish employer–employee data for the period 1997 to 2013, we 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 some suggestive evidence that increased openness correlates positively with upward mobility for occupations that play a major role in international commerce, such as professionals and managers. Mondialisation, recrutement et mobilité professionnelle. Les recherches antérieures indiquent que les sociétés versent une prime pour attirer des travailleurs des sociétés exportatrices si l'expérience de travail auprès d'une société qui évolue à l'international réduit les coûts de l'échange. Puisque l'expérience internationale a moins de valeur pour les sociétés qui n'exportent pas, nous pourrions nous attendre à observer des différences sur le plan du recrutement entre les sociétés qui évoluent à l'international et celles qui servent un marché intérieur. En outre, l'ouverture accrue pourrait mener à une mobilité supérieure d'un emploi à un autre si une hausse de la mondialisation augmente à la fois la part des sociétés exportatrices et le nombre de travailleurs ayant des compétences qui les rendent attrayants pour d'autres sociétés exportatrices. À l'aide des données de la Suède qui associent employeurs et employés pour la période allant de 1997 à 2013, nous constatons effectivement des différences systématiques entre la façon dont les sociétés exportatrices et non exportatrices embauchent des travailleurs : les premières ont une part relativement importante des recrutements auprès d'autres sociétés exportatrices, ce qui est conforme à l'hypothèse. Nous observons également une corrélation positive entre une plus grande ouverture et une mobilité accrue pour les postes qui jouent un rôle important dans le commerce international, comme les professionnels et les gestionnaires.

Suggested Citation

  • Carl Davidson & Fredrik Heyman & Steven Matusz & Fredrik Sjöholm & Susan Chun Zhu, 2023. "Globalization, recruitments, and job mobility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 357-386, May.
    • Handle: RePEc:wly:canjec:v:56:y:2023:i:2:p:357-386
    DOI: 10.1111/caje.12655
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    Cited by:

    1. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2022. "How International Experience Helps Shape Labor Market Outcomes," Working Paper Series 1453, Research Institute of Industrial Economics, revised 09 Jun 2024.
    2. Paul Lavery & Marina Spaliara & Holger Görg, 2024. "Private equity buyouts & firm exporting in crisis periods: Exploring a new channel," Working Papers 2024_09, Business School - Economics, University of Glasgow.

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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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