Maria D. Tito
University of British Columbia
997-1873 East Mall
Vancouver, BC V6T 1Z1
NBER Working Papers and Publications
|May 2015||Does Exporting Improve Matching? Evidence from French Employer-Employee Data|
with Matilde Bombardini, Gianluca Orefice: w21225
Does opening a market to international trade affect the pattern of matching between firms and workers? And does the modified sorting pattern affect welfare? This paper answers these questions both theoretically and empirically in three parts. We set up a model of matching between heterogeneous workers and firms where variation in the worker type at the firm level exists in equilibrium only because of the presence of search costs. When firms gain access to the foreign market their revenue potential increases. When stakes are high, matching with the right worker becomes particularly important because deviations from the ideal match quickly reduce the value of the relationship. Hence exporting firms select sets of workers that are less dispersed relative to the average. We then document a nov...