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Title:Labor market adjustments after a large import shock: evidence from the German clothing industry and the multi-fibre arrangement PDF Logo
Authors:Braakmann, Nils
Wagner, Joachim
Issue Date:2009
Series/Report no.:IZA Discussion Papers 4633
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.
Subjects:Import shock
adjustment
clothing industry
Germany
JEL:F13
F14
F16
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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