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Exporting and labour demand: Micro-level evidence from Germany

Andreas Lichter, Andreas Peichl () and Sebastian Siegloch ()

Canadian Journal of Economics, 2017, vol. 50, issue 4, 1161-1189

Abstract: It is widely believed that globalization increases the extent of employment and wage responses to economic shocks. In this paper, we investigate the effect of firms exporting activities on the wage elasticity of labour demand. Using rich, administrative linked employeremployee panel data from Germany and destination-specific industry-level information on trade flows, we explicitly control for self-selection into exporting and endogeneity concerns. Overall, we find that exporting has a significant positive effect on the (absolute value of the) unconditional wage elasticity of labour demand. In line with our hypothesis, we further show that the effect is particularly strong for those plants that export a significant share of their output to low- and medium-income countries, hence face relatively more price-elastic product demand.

JEL-codes: F16 (search for similar items in EconPapers)
Date: 2017
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Related works:
Journal Article: Exporting and labour demand: Micro‐level evidence from Germany (2017) Downloads
Working Paper: Exporting and Labor Demand: Micro-level Evidence from Germany (2014) Downloads
Working Paper: Exporting and labor demand: Micro-level evidence from Germany (2014) Downloads
Working Paper: Exporting and Labor Demand: Micro-Level Evidence from Germany (2013) Downloads
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Handle: RePEc:cje:issued:v:50:y:2017:i:4:p:1161-1189