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Labor Market Adjustments after a Large Import Shock: Evidence from the German Clothing Industry and the Multi-Fibre Arrangement

Nils Braakmann () and Joachim Wagner ()

No 4633, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper considers labor market adjustments following a large import shock in the German clothing industry caused by the phasing out of the Multi-Fibre Arrangement. Using the German shoe industry as a control group and administrative data, we study adjustments on the individual and firm level using difference-in-differences. Our results suggest relatively small increases in unemployment risk and no wage effects on the individual level, despite a 30% increase in plant mortality. Part of the different effects found for plants and individuals can be attributed to the reallocation of workers into other industries and occupations.

Keywords: clothing industry; adjustment; import shock; Germany (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2009-12
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Published in: Dierk Hirschel, Peter Paic und Markus Zwick (Hrsg.), Daten in der wirtschaftswissenschaftlichen Forschung, Wiesbaden, Springer Gabler 2013, 201-224

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