Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125779
Authors: 
Dauth, Wolfgang
Findeisen, Sebastian
Suedekum, Jens
Year of Publication: 
2016
Series/Report no.: 
DICE Discussion Paper 205
Abstract: 
This paper addresses the impact of rising international trade exposure on individual earnings profiles in heterogeneous worker-establishment matches. We exploit rich panel data on job biographies of manufacturing workers in Germany, and apply a high-dimensional fixed effects approach to analyze endogenous mobility between plants, industries, and regions in response to trade shocks. Rising import penetration reduces earnings within job spells, and it induces workers to leave the exposed industries. Intra-industry mobility to other firms or regions are far less common adjustments. This induced industry mobility mitigates the adverse impacts of import shocks in the workers' subsequent careers, but their cumulated earnings over a longer time horizon are still negatively affected. By contrast, we find much less evidence for sorting into export-oriented industries, but the earnings gains mostly arise within job spells. These results point at an asymmetry in the individual labour market response to trade shocks: Import shocks trigger substantial "push effects", whereas the "pull effects" of export shocks are weaker.
Subjects: 
international trade
Individual labour market responses
work biographies
endogenous worker mobility
Germany
JEL: 
F16
J31
R11
ISBN: 
978-3-86304-204-2
Document Type: 
Working Paper

Files in This Item:
File
Size
768.77 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.