All We Need is Love? Trade-Adjustment, Inequality and the Role of the Partner

Katrin Stephanie Huber and Erwin Winkler

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: We examine the impact of Germany’s trade integration with China and Eastern Europe from 1993 through 2008 on earnings inequality between households. We especially focus our attention on the role of assortative mating for the magnitude of this impact. Our analysis demonstrates that the trade shock worked towards an increase of earnings inequality, both in the short and in the medium run. Moreover, we illustrate that mating has become increasingly assortative in Germany, especially among low-skilled workers. The results of a counterfactual experiment reveal that this surge in the assortativeness of mating might deepen the negative impact of future trade shocks on earnings inequality between households and might consequently also reduce potential gains from trade.

JEL-codes: F16 J12 J31 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

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Working Paper: All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145900

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