The Research Institute for Industrial Economics (IFN), The Leverhulme Centre for Research on Globalisation and Economic Policy and CIBER at Michigan State University has arranged a workshop on globalization and labor markets. Trade models with heterogeneous firms have been a major focus of research for the past decade. More recently, some trade theorists have begun to enrich these models by incorporating heterogeneity in the labor market as well. Such research holds the potential to uncover connections between the nexus of worker and firm decisions with characteristics of the global environment. The idea of the workshop was to bring together a small group of theorists who are working on such models with empiricists who are familiar with matched worker-firm data sources.