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Regional origins of employment volatility: evidence from German states

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  • Claudia Buch

    ()

  • Martin Schlotter

    ()

Abstract

Greater openness for trade can have positive welfare effects in terms of higher growth. But increased openness may also increase uncertainty through a higher volatility of employment. We use regional data from Germany to test whether openness for trade has an impact on volatility. We find a downward trend in the unconditional volatility of employment, paralleling patterns for output volatility. The conditional volatility of employment, measuring idiosyncratic developments across states, in contrast, has remained fairly unchanged. In contrast to evidence for the US, we do not find a significant link between employment volatility and trade openness. Copyright Springer Science+Business Media, LLC. 2013

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Bibliographic Info

Article provided by Springer in its journal Empirica.

Volume (Year): 40 (2013)
Issue (Month): 1 (February)
Pages: 1-19

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Handle: RePEc:kap:empiri:v:40:y:2013:i:1:p:1-19

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Web page: http://www.springerlink.com/link.asp?id=100261

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Keywords: Employment volatility; Trade openness; Regional labour markets; F41; E32; R23;

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Cited by:
  1. Ben Salha, Ousama, 2013. "Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries," Economic Systems, Elsevier, vol. 37(4), pages 572-597.
  2. Jaanika Meriküll & Tairi Rõõm, . "Are foreign-owned firms different ? Comparision of employment volatility and elasticity of labour demand," Bank of Estonia Working Papers wp2014-1, Bank of Estonia.

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