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International Trade and Worker Turnover – Empirical Evidence for Germany

  • Daniel Baumgarten


Using a linked employer-employee data set for Germany, this paper studies how worker turnover is related to establishments‘ international trade involvement. The descriptive analysis shows that trading establishments have lower worker turnover rates than non-traders, suggesting a higher degree of employment stability. Conditional on an extensive set of control variables, exporting is further associated with a higher net job flow rate, which is almost entirely due to a lower separation rate (particularly for highskilled workers and transitions into non-employment). In contrast, an increase in import intensity is associated with a lower accession rate (particularly for low-skilled workers and their accessions out of non-employment). These results are more pronounced for smaller establishments, and they partly lose statistical significance once unobservable establishment characteristics are taken into account.

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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0228.

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Length: 36 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:rwi:repape:0228
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  16. Abowd, John M & Corbel, Patrick & Kramarz, Francis, 1997. "The Entry and Exit of Workers and the Growth of Employment: An Analysis of French Establishments," CEPR Discussion Papers 1765, C.E.P.R. Discussion Papers.
  17. Ibsen, Rikke & Warzynski, Frederic & Westergård-Nielsen, Niels, 2009. "Employment Growth and International Trade: A Small Open Economy Perspective," Working Papers 09-9, University of Aarhus, Aarhus School of Business, Department of Economics.
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