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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:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Empirical Models of Trade Policy G5-V2
Abstract:This paper provides evidence on the labor market adjustments following a large import shock on both the individual and the firm level. We exploit a quasi-experimental 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:Labor market adjustment
import shock
Multi-Fibre Arrangement
JEL:F13
F16
J30
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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