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Adjusting to Globalization in Germany

Author

Listed:
  • Wolfgang Dauth
  • Sebastian Findeisen
  • Jens Suedekum

Abstract

We study the impact of trade exposure on the job biographies of 2.4 million manufacturing workers in Germany. Rising export opportunities lead to two equally important sources of earnings gains: on the job and employer switches within the same industry. Highly skilled workers benefit the most. Import shocks mostly hurt low-skilled workers, especially when they possess lots of industry-specific human capital. They also destroy workers’ rents when separating from high-wage plants, and they leave strongly scarring effects in the event of a mass layoff. We connect our results to the growing theoretical literature on the labor market effects of trade.

Suggested Citation

  • Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum, 2021. "Adjusting to Globalization in Germany," Journal of Labor Economics, University of Chicago Press, vol. 39(1), pages 263-302.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/707356
    DOI: 10.1086/707356
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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