Bye Bye, G.I. - The Impact of the U.S. Military Drawdown on Local German Labor Markets

Jan Peter aus dem Moore and Alexandra Spitz-Oener

SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649

Abstract: What is the impact of a local negative demand shock on local labor markets? We exploit the unique natural experiment provided by the drawdown of U.S. military forces in West Germany after the end of the Cold War to investigate this question. We find persistent negative effects of the reduction in the U.S. forces on private sector employment, with con- siderable heterogeneity in terms of age and education groups, and sectors. In addition, the U.S. forces reduction resulted in a rise in local unemployment, whereas migration patterns and wages were not affected.

Keywords: Labor demand shock; Base closure; Employment; Wages (search for similar items in EconPapers)
JEL-codes: J23 R23 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2012-03
New Economics Papers: this item is included in nep-his, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2012-024.pdf (application/pdf)

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:hum:wpaper:sfb649dp2012-024

Access Statistics for this paper

More papers in SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649 Contact information at EDIRC.
Bibliographic data for series maintained by RDC-Team ( this e-mail address is bad, please contact ).