@TechReport{iza:izadps:dp10034, author={Baziki, Selva B. and Ginja, Rita and Milicevic, Teodora Borota}, title={Trade Competition, Technology and Labour Reallocation}, year={2016}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={10034}, url={https://www.iza.org/index.php/publications/dp10034}, abstract={This paper provides new evidence on the reallocation of workers across firms and industries with different technologies in response to increased import competition from developing countries. Using employer-employee matched data for the Swedish manufacturing sector, we find increased assortative matching of workers in ICT (information and communication technologies) intensive industries, that is, high(low)-wage workers sort into high(low)-wage firms. Industries with low ICT intensity do not exhibit these sorting patterns. A labour market matching model explains the increased assortative matching in ICT intensive industries in response to stronger import competition through an increase in the relative demand for qualified workers.}, keywords={wage inequality;employment dynamics;assortative matching;import competition;technological change}, }