Labor market adjustments after a large import shock: evidence from the German clothing industry and the multi-fibre arrangement

Arbeitspapier

This paper considers labor market adjustments following a large import shock in the German clothing industry caused by the phasing out of the Multi-Fibre Arrangement. Using the German shoe industry as a control group and administrative data, we study adjustments on the individual and firm level using difference-in-differences. Our results suggest relatively small increases in unemployment risk and no wage effects on the individual level, despite a 30% increase in plant mortality. Part of the different effects found for plants and individuals can be attributed to the reallocation of workers into other industries and occupations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4633

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Trade and Labor Market Interactions
• Subject: Import shock ; adjustment ; clothing industry ; Germany ; Bekleidungsindustrie ; Schuhindustrie ; Schock ; Beschäftigungseffekt ; Schuhe ; Import ; Arbeitsmobilität ; Allokation ; Deutschland ; Welttextilabkommen ; Außenhandelsliberalisierung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braakmann, Nils ; Wagner, Joachim
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/36050
• Last update: 10.03.2025, 11:41 AM CET