International competitiveness, job creation and job destruction--An establishment-level study of German job flows

Christoph Moser (), Dieter Urban and Beatrice Weder di Mauro

Journal of International Economics, 2010, vol. 80, issue 2, 302-317

Abstract: This study investigates the impact of international competitiveness on net employment, job creation, job destruction, and gross job flows for a representative sample of German establishments from 1993 to 2005. We find a statistically significant but economically small effect of real exchange rate shocks on employment, comparable to the one found in studies for the United States. However, contrary to the United States, the employment adjustment (among surviving firms) operates mainly through the job creation rather than the job destruction rate. Job destruction occurs essentially through discrete events such as restructuring, outsourcing and bankruptcy. We suggest that these findings are consistent with a highly regulated labor market, in which smooth adjustment is costly and possibly delayed.

Keywords: Competitiveness; Gross; worker; flows; Real; exchange; rate; Openness; Bankruptcy; Inverse; probability; weighted; GMM; Attrition; estimator (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022-1996(09)00119-6
Full text for ScienceDirect subscribers only

Related works:
Working Paper: International Competitiveness, Job Creation and Job Destruction - An Establishment Level Study of German Job Flows (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:80:y:2010:i:2:p:302-317

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().