Regional origins of employment volatility: evidence from German states

Claudia Buch and Martin Schlotter

Empirica, 2013, vol. 40, issue 1, 19 pages

Abstract: Greater openness for trade can have positive welfare effects in terms of higher growth. But increased openness may also increase uncertainty through a higher volatility of employment. We use regional data from Germany to test whether openness for trade has an impact on volatility. We find a downward trend in the unconditional volatility of employment, paralleling patterns for output volatility. The conditional volatility of employment, measuring idiosyncratic developments across states, in contrast, has remained fairly unchanged. In contrast to evidence for the US, we do not find a significant link between employment volatility and trade openness. Copyright Springer Science+Business Media, LLC. 2013

Keywords: Employment volatility; Trade openness; Regional labour markets; F41; E32; R23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Working Paper: Regional Origins of Employment Volatility: Evidence from German States (2008)
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DOI: 10.1007/s10663-011-9175-2

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