Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/36050 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 4633
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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

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