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Perceived job insecurity, unemployment risk and international trade: A micro-level analysis of employees in German service industries

Maren Lurweg

No 32, MEP Discussion Papers from University of Münster, Münster Center for Economic Policy (MEP)

Abstract: The present paper investigates the impact of international trade on individual labour market outcomes in the German service sector for the period 1995-2006. Combining micro-level data from the German Socio-Economic Panel (SOEP) and industry-level trade data from inputoutput tables, we examine the impacts of international trade on (1) the individually reported fear of job loss and (2) job-to-unemployment transitions. We therefore apply both a subjective and a more objective measure of job insecurity. Our results indicate that international trade does indeed affect labour market outcomes in German service industries. Employees in trading service sectors face both a higher subjective and objective unemployment risk, regardless of their skill level. Moreover, growth in real net exports is positively correlated with perceived job insecurity and individual unemployment risk.

Keywords: International trade; perceived job insecurity; employment status (search for similar items in EconPapers)
JEL-codes: C23 F16 J63 (search for similar items in EconPapers)
Date: 2010
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