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Wage and Mobility Effects of Trade and Migration

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  • John P. Haisken-DeNew

    (SELAPO (University of Munich))

  • Klaus F. Zimmermann

    (SELAPO (University of Munich) and CEPR (London))

Abstract

The paper investigates the relative importance of trade and immigration for earnings and job mobility of German male workers. Using panel data, changes of workplaces within the firm as between the firms are separated from occupational changes. Various subgroups are investigated, differentiating between blue and white collar workers as according to job level and work experience. The general finding is that trade matters more than migration, which is contrary to the public attention both determinants receive, at least in Germany. While wages are affected negatively by a relative increase in imports, immigration exhibits a positive effect. Trade seems to depress occupational mobility and internal movement, but stimulates inter-firm changes. Immigration affects intra-firm changes negatively, but is largely unrelated with other aspects of labor mobility.

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Bibliographic Info

Paper provided by SELAPO Center for Human Resources in its series Working Papers with number _001.

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Handle: RePEc:wop:selapo:_001

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Related research

Keywords: panel data; probit model; trade; wages; occupational mobility; international migration;

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Cited by:
  1. Franz, Wolfgang, 1999. "Real and monetary challenges to wage policy in Germany at the turn of the millennium: technical progress, globalization and European Monetary Union," ZEW Discussion Papers 99-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
  3. Herbert Brücker, 2003. "Die Arbeitsmarkteffekte der Ost-West-Migration: theoretische Überlegungen, Simulationen und empirische Befunde," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 579-593.
  4. Daniel S. Hamermesh, 1997. "Immigration and the Quality of Jobs," NBER Working Papers 6195, National Bureau of Economic Research, Inc.
  5. Bauer, Thomas K. & Zimmermann, Klaus F., 2000. "Immigration Policy in Integrated National Economies," IZA Discussion Papers 170, Institute for the Study of Labor (IZA).
  6. Thomas Bauer, 1998. "Do Immigrants Reduce Natives' Wages? Evidence from Germany," Departmental Working Papers 199802, Rutgers University, Department of Economics.
  7. Yaya, Mehmet-Erdem, 2005. "Immigration, Trade and Wages in Germany," MPRA Paper 505, University Library of Munich, Germany, revised Jun 2006.
  8. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series 341, CESifo Group Munich.
  9. Ben J. Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2002. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," CESifo Working Paper Series 718, CESifo Group Munich.
  10. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
  11. Flam, Harry, 2003. "Turkey and the EU: Politics and Economics of Accession," Seminar Papers 718, Stockholm University, Institute for International Economic Studies.
  12. Venturini, Alessandra & Villosio, Claudia, 2002. "Are Immigrants Competing with Natives in the Italian Labour Market? The Employment Effect," IZA Discussion Papers 467, Institute for the Study of Labor (IZA).
  13. Haggeney, Isabelle & Fitzenberger, Bernd & Ernst, Michaela, 1998. "Wer ist noch Mitglied in den Gewerkschaften? Eine Panelanalyse für Westdeutschland," ZEW Discussion Papers 98-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Brücker, Herbert & Fachin, Stefano & Venturini, Alessandra, 2011. "Do foreigners replace native immigrants? A panel cointegration analysis of internal migration in Italy," Economic Modelling, Elsevier, vol. 28(3), pages 1078-1089, May.

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