EconPapers    
Economics at your fingertips  
 

Adjusting to Globalization - Evidence from Worker-Establishment Matches in Germany

Wolfgang Dauth, Sebastian Findeisen and Jens Südekum
Authors registered in the RePEc Author Service: Jens Suedekum ()

No 11045, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper addresses the impact of rising international trade exposure on individual earnings profiles in heterogeneous worker-establishment matches. We exploit rich panel data on job biographies of manufacturing workers in Germany, and apply a high-dimensional fixed effects approach to analyze endogenous mobility between plants, industries, and regions in response to trade shocks. Rising import penetration reduces earnings within job spells, and it induces workers to leave the exposed industries. Intra-industry mobility to other firms or regions are far less common adjustments. This induced industry mobility mitigates the adverse impacts of import shocks in the workers' subsequent careers, but their cumulated earnings over a longer time horizon are still negatively affected. By contrast, we find much less evidence for sorting into export-oriented industries, but the earnings gains mostly arise within job spells. These results point at an asymmetry in the individual labour market response to trade shocks: Import shocks trigger substantial ``push effects'', whereas the ``pull effects'' of export shocks are weaker.

Keywords: endogenous worker mobility; Individual labour market responses; International trade; work biographies (search for similar items in EconPapers)
JEL-codes: F16 J31 R11 (search for similar items in EconPapers)
Date: 2016-01
New Economics Papers: this item is included in nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11045 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Adjusting to globalization - Evidence from worker-establishment matches in Germany (2016) Downloads
Working Paper: Adjusting to Globalization - Evidence from Worker-Establishment Matches in Germany (2016) Downloads
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:cpr:ceprdp:11045

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11045

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-09-26
Handle: RePEc:cpr:ceprdp:11045