TY - RPRT AU - Baziki, Selva B. AU - Ginja, Rita AU - Milicevic, Teodora Borota TI - Trade Competition, Technology and Labour Reallocation PY - 2016/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 10034 UR - https://www.iza.org/index.php/publications/dp10034 AB - 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. KW - wage inequality KW - employment dynamics KW - assortative matching KW - import competition KW - technological change ER -