2017

Global Engagement and the Occupational Structure of Firms

Reprint No. 2017:51

Author(s): Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun ZhuYear: 2017 Title: European Economic Review Volume (No.): 100 (November) Pages: 273–292
Online article (restrictions may apply)

Global Engagement and the Occupational Structure of Firms Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu


Global engagement can impact firm organization and the occupations firms need. We use a simple task-based model of the firm's choice of occupational inputs to examine how that choice varies with global engagement. We reveal a robust and causal relationship between global engagement and the skill mix of occupations within firms, using Swedish matched employer-employee data that link firms and the labor force for 1997–2005. Taking an instrumental variable approach, we find that increased export shares (driven by higher world import demand) skew the labor mix more toward high-skill occupations. Our results suggest that global engagement may require firms to employ more skilled labor to undertake complex tasks embodied in international businesses, which have further implications for the demand for specific occupational skills and overall wage dispersion.


Reference:
Davidson, Carl, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu (2017), "Global Engagement and the Occupational Structure of Firms". European Economic Review 100(November), 273–292.

Fredrik Heyman

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Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Fredrik Sjöholm

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Ph: +46 46 222 74 26
fredrik.sjoholm@nek.l...

Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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