%0 Report %A Baziki, Selva B. %A Ginja, Rita %A Milicevic, Teodora Borota %T Trade Competition, Technology and Labour Reallocation %D 2016 %8 2016 Jul %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 10034 %U https://www.iza.org/index.php/publications/dp10034 %X 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. %K wage inequality %K employment dynamics %K assortative matching %K import competition %K technological change