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

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  • Maren Lurweg

Abstract

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.

Suggested Citation

  • Maren Lurweg, 2010. "Perceived Job Insecurity, Unemployment Risk and International Trade: A Micro-Level Analysis of Employees in German Service Industries," SOEPpapers on Multidisciplinary Panel Data Research 300, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp300
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.356860.de/diw_sp0300.pdf
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    Cited by:

    1. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.

    More about this item

    Keywords

    International trade; perceived job insecurity; employment status;

    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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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