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Perceived Job Insecurity, Unemployment Risk and International Trade: A Micro-Level Analysis of Employees in German Service Industries

  • Maren Lurweg
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    The present paper investigates the impact of international trade on individual labour market outcomes in the German service sector for the period 1995-2006. Combiningmicro-level data from the German Socio-Economic Panel (SOEP) and industry-level trade data from input-output tables, we examine the impacts of international trade on (1) the individually reported fear of job loss and (2) job-to-unemployment transitions. We therefore apply both a "subjective" and a more "objective" measure of job insecurity. Our results indicate that international trade does indeed affect labour market outcomes in German service industries. Employees in trading service sectors face both a higher subjective and objective unemployment risk, regardless of their skill level. Moreover, growth in real net exports is positively correlated with perceived job insecurity and individual unemployment risk.

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    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 300.

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    Length: 32 p.
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:diw:diwsop:diw_sp300
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