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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

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.

Suggested Citation

  • Maren Lurweg & Nicole Uhde, 2010. "International Trade and Individual Labour Market Perspectives: A Micro-Level Analysis of German Manufacturing Workers," SOEPpapers on Multidisciplinary Panel Data Research 297, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp297
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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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    Cited by:

    1. Vicente Donoso & Víctor Martín & Asier Minondo, 2014. "Import competition from China and unemployment. An analysis using Spanish workers’micro-data," Working Papers del Instituto Complutense de Estudios Internacionales 1405, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    2. Vicente Donoso & Víctor Martín & Asier Minondo, 2015. "Does Competition from China Raise the Probability of Becoming Unemployed? An Analysis Using Spanish Workers’ Micro-Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 373-394, January.
    3. repec:ucm:wpaper:05-14 is not listed on IDEAS

    More about this item

    Keywords

    International trade; employment status; individual wages;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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