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Title:Bye bye, GI: The impact of the US military drawdown on local German labor markets PDF Logo
Authors:aus dem Moore, Jan Peter
Spitz-Oener, Alexandra
Issue Date:2012
Series/Report no.:SFB 649 discussion paper 2012-024
Abstract:What is the impact of a local negative demand shock on local labor markets? We exploit the unique natural experiment provided by the drawdown of U.S. military forces in West Germany after the end of the Cold War to investigate this question. We find persistent negative effects of the reduction in the U.S. forces on private sector employment, with considerable heterogeneity in terms of age and education groups, and sectors. In addition, the U.S. forces reduction resulted in a rise in local unemployment, whereas migration patterns and wages were not affected.
Subjects:labor demand shock
base closure
employment
wages
JEL:J23
R23
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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