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 155, Working Paper Series in Economics from University of Lüneburg, Institute of Economics
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.
Pages: 34 pages
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Working Paper: Labor Market Adjustments after a Large Import Shock: Evidence from the German Clothing Industry and the Multi-Fibre Arrangement (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:lue:wpaper:155
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