Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93413
Authors: 
Lichter, Andreas
Peichl, Andreas
Siegloch, Sebastian
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4668
Abstract: 
It is widely believed that globalization affects the extent of employment and wage responses to economic shocks. To provide evidence for this, we analyze the effect of firms' exporting behavior on the elasticity of labor demand. Using rich, German administrative linked employer-employee panel data from 1996 to 2008, we explicitly control for self-selection into exporting and endogeneity concerns. In line with our theoretical model, we find that exporting at both the intensive and extensive margins significantly increases the (absolute value of the) unconditional own-wage labor demand elasticity. This is not only true for the average worker, but also for different skill groups. For the median firm, the elasticity is three-quarters higher when comparing exporting to non-exporting firms.
Subjects: 
trade
export
labor demand
wage elasticity
administrative microdata
JEL: 
F16
F66
J23
Document Type: 
Working Paper

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