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Exporting behavior and the demand for skills in German establishments

Arnd Kölling and Antje Mertens

No 97, Working Papers from Berlin School of Economics and Law, Institute of Management Berlin (IMB)

Abstract: The analysis deals with the influence of exporting on the demand for workers with different skill levels. Previous literature suggests that this includes two major topics. First, productivity of exporting firms may increase due to learning facts after entering international markets and/or be higher initially due to selfselection of firms into exporting. Second, exporting potentially leads to a change in the employment structure towards highly skilled workers. We applied a conditional difference-in-difference regression model of labor demand for three different skill levels to investigate this hypothesis. For this purpose, we use German establishment panel data that covers the period from 2000 to 2014. The outcome shows that not only self-selection into exports must be controlled for but also that changes in employment seem to be skill biased in manufacturing firms starting export activities. Nevertheless, there are no corresponding findings for firms that stop exporting or establishments in the service sector respectively.

Keywords: Export; labor demand; skills; treatment model (search for similar items in EconPapers)
JEL-codes: F14 J23 J24 C31 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-int and nep-lma
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