Arbeitspapier

Adjusting to globalization - Evidence from worker-establishment matches in Germany

This paper addresses the impact of rising international trade exposure on individual earnings profiles in heterogeneous worker-establishment matches. We exploit rich panel data on job biographies of manufacturing workers in Germany, and apply a high-dimensional fixed effects approach to analyze endogenous mobility between plants, industries, and regions in response to trade shocks. Rising import penetration reduces earnings within job spells, and it induces workers to leave the exposed industries. Intra-industry mobility to other firms or regions are far less common adjustments. This induced industry mobility mitigates the adverse impacts of import shocks in the workers' subsequent careers, but their cumulated earnings over a longer time horizon are still negatively affected. By contrast, we find much less evidence for sorting into export-oriented industries, but the earnings gains mostly arise within job spells. These results point at an asymmetry in the individual labour market response to trade shocks: Import shocks trigger substantial "push effects", whereas the "pull effects" of export shocks are weaker.

ISBN
978-3-86304-204-2
Sprache
Englisch

Erschienen in
Series: DICE Discussion Paper ; No. 205

Klassifikation
Wirtschaft
Trade and Labor Market Interactions
Wage Level and Structure; Wage Differentials
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Thema
international trade
Individual labour market responses
work biographies
endogenous worker mobility
Germany

Ereignis
Geistige Schöpfung
(wer)
Dauth, Wolfgang
Findeisen, Sebastian
Suedekum, Jens
Ereignis
Veröffentlichung
(wer)
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
(wo)
Düsseldorf
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dauth, Wolfgang
  • Findeisen, Sebastian
  • Suedekum, Jens
  • Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Entstanden

  • 2016

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