[Econmaster2012] Research Seminar in Economics-Announcement

[Johannes Pfeifer]

Dear All,

 

we are happy to announce the following  Research Seminar in Economics to
take place on Tuesday, November 13th  at  18:00 - 19:30 in room E03, ground
floor, Mohlstraße 36.

 

Presenter:  Hartmut Egger – University of Bayreuth

 

Title:  " The Impact of Trade on the Organization of Labor within Firms" 

(joint work with Michael Koch)

 

Abstract:

 

This paper analyzes how globalization affects matching efficiency in the
labor market. While

previous studies have focused on the mismatch between heterogeneous workers
and firms within

an industry, we look inside these firms and investigate how trade alters the
matching of worker-specific

abilities and task-specific requirements. The outcome of this matching
depends on how

firms organize the internal labor market and this in turn is an endogenous
decision. In our

model only the most productive firms start exporting in the open economy,
and these firms find

it attractive to increase the investment into the internal allocation
process, thereby improving

the matching outcome. Things are different for non-exporters, whose market
share shrinks in the

open economy, lowering these firms’ incentive to invest into firm-internal
labor allocation process.

As a result, trade not only increases matching efficiency and thus the
average productivity

of workers due to adjustments in the firm-internal organization of labor,
but also raises the

dispersion of labor productivity between heterogeneous producers. Changes in
the firm-internal

organization of labor also point to a so far unexplored channel through
which gains from trade

can materialize.

 

Regards,

 

Prof. Dr. Johannes Pfeifer

 

--

Johannes Pfeifer

Department of Economics

University of Tuebingen

Mohlstrasse 36

72074 Tuebingen

Germany

Phone: +49 7071 2974137

 

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