Labor Market Impact of Disruptions in Global Value Chains

Moritz Meister
Additional contact information
Moritz Meister: Institute for Employment Research (IAB), Nuremberg, Germany ; Kiel University

No 202410, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper investigates the causal effect of global value chain (GVC)-related trade on the German labor market during the COVID-19 crisis, using a difference-in-differences approach combined with entropy balancing. The analysis of monthly establishment-level data from January 2019 to December 2021 shows that a one standard deviation increase in GVC-related trade with China leads to an increase in short-time work of up to 27 percentage points, with significant positive effects observed from May to October 2020. For this period, the regression results imply that a one standard deviation increase in GVC integration gives rise to an additional expenditure on short-time work of around 7.3 billion euros. In contrast, GVC-related trade with the whole world as a trading partner does not show a significant impact. Additional survey data support these findings, suggesting that establishments that are more GVC-integrated with China face more difficulties in obtaining inputs or dealing with suppliers in 2020." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; China; Pandemie; IAB-Open-Access-Publikation; Außenhandel; Auswirkungen; Beschäftigungseffekte; Betriebsunterbrechung; Globalisierung; IAB-Betriebs-Historik-Panel; IAB-Betriebspanel; internationale Arbeitsteilung; Kurzarbeit; Produktionsorganisation; regionaler Arbeitsmarkt; Wertschöpfung; Wirtschaftszweige; Zulieferer; 2019-2021 (search for similar items in EconPapers)
JEL-codes: C22 C23 D57 F16 F61 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2024-07-24
New Economics Papers: this item is included in nep-cna and nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.48720/IAB.DP.2410

Related works:
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:iab:iabdpa:202410

DOI: 10.48720/IAB.DP.2410

Access Statistics for this paper

More papers in IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().