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Dance with the One that Brought You? Matching and Sorting in a Global Economy

Author

Listed:
  • Philipp Kircher

    (LSE)

  • Elhanan Helpman

    (Harvard University)

  • Gene Grossman

    (Princeton University)

Abstract

Trade effects the size of firms in the economy differentially. Exporting firms tend to become larger relative to non-exporting firms. This affects different workers in the economy differentially. We develop a two-sided matching model with heterogeneous firms and heterogeneous workers and firm size, and study how the opening to trade effects both firm size and the wage distribution.

Suggested Citation

  • Philipp Kircher & Elhanan Helpman & Gene Grossman, 2012. "Dance with the One that Brought You? Matching and Sorting in a Global Economy," 2012 Meeting Papers 900, Society for Economic Dynamics.
    • Handle: RePEc:red:sed012:900
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    Cited by:

    1. Campbell, Douglas L. & Lusher, Lester, 2019. "The impact of real exchange rate shocks on manufacturing workers: An autopsy from the MORG," Journal of International Money and Finance, Elsevier, vol. 91(C), pages 12-28.

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