Exporting and labor demand: Micro-level evidence from Germany

Arbeitspapier

It is widely believed that globalization affects the extent of employment and wage responses to economic shocks. To provide evidence for this, we analyze the effect of firms' exporting behavior on the elasticity of labor demand. Using rich, German administrative linked employer-employee panel data from 1996 to 2008, we explicitly control for self-selection into exporting and endogeneity concerns. In line with our theoretical model, we find that exporting at both the intensive and extensive margins significantly increases the (absolute value of the) unconditional own-wage labor demand elasticity. This is not only true for the average worker, but also for different skill groups. For the median firm, the elasticity is three-quarters higher when comparing exporting to nonexporting firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 14-013

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; Economic Impacts of Globalization: Labor ; Labor Demand
• Subject: trade ; export ; labor demand ; wage elasticity ; administrative microdata

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lichter, Andreas ; Peichl, Andreas ; Siegloch, Sebastian
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/91725
• URN: urn:nbn:de:bsz:180-madoc-359338
• Last update: 10.03.2025, 11:43 AM CET