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International Trade and Individual Labour Market Perspectives: A Micro-Level Analysis of German Manufacturing Workers

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  • Maren Lurweg
  • Nicole Uhde
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    Abstract

    This paper studies the impact of international trade on individual labour market outcomes in the German manufacturing sector for the period 1995-2006. Combining micro-level data from the German Socioeconomic Panel and industry-level trade data from input-output tables, we examine the impacts on (1) job-to-unemployment transitions and (2) annual earnings. The probability of becoming unemployed rises when workers are employed in Trade Sensitive industries and decreases for workers in Trade Gaining industries. Wage effects are statistically significant for three of four trade-exposed groups of industries, but they are relatively small. The personal characteristics of workers seem to exert a substantial effect on employment status and earnings level.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.356361.de/diw_sp0297.pdf
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    Bibliographic Info

    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 297.

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    Length: 34 p.
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:diw:diwsop:diw_sp297

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    Keywords: International trade; employment status; individual wages;

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