Adjusting to Globalization in Germany

Wolfgang Dauth, Sebastian Findeisen and Jens Suedekum

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: We study the impact of trade exposure on the job biographies of 2.4 million manufacturing workers in Germany. Rising export opportunities lead to two equally important sources of earnings gains: on-the-job, and via employer switches within the same industry. Highly skilled workers benefit the most. Import shocks mostly hurt lowskilled workers, especially when they possess lots of industry-specific human capital. They also destroy workers’ rents when separating from high-wage plants, and they leave strongly scarring effects in the event of a mass layoff. We connect our results to the growing theoretical literature on the labor market effects of trade.

Keywords: Trade Adjustments; Worker Mobility; Frictional Labor Markets (search for similar items in EconPapers)
JEL-codes: F16 J31 R11 (search for similar items in EconPapers)
Pages: 55
Date: 2019-08
New Economics Papers: this item is included in nep-eur, nep-int and nep-lma
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Adjusting to Globalization in Germany (2021)
Working Paper: Adjusting to Globalization in Germany (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2019_118

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