Research seminar by Andrei Shevchenko (Michigan State University): «Globalization and Firm Level Adjustment with Imperfect Labor Markets»
Thursday, September 09 ICEF held the Research seminar.
Lecturer: Andrei Shevchenko (Michigan State University)
Theme: «Globalization and Firm Level Adjustment with Imperfect Labor Markets»
Venue: Pokrovski Bulvar, 11, Room Zh-822
Abstract: In a model with search generated unemployment and heterogeneity on both sides of the labor market, we show that firms that export will be bigger, more capital intensive and pay higher wages than other firms. We also show that there will be imperfect persistence in the decision to export and that liberalization increases the wage gap between high and low skill workers. We also explore the relationship between openness and productivity and show that in export-oriented markets openness can increase aggregate productivity while generating within-firm productivity losses for the weakest firms. Finally, we show that openness can lead to within-firm productivity gains for the weakest firms in import-competing industries.