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Wage and Mobility Effects of Trade and Migration

Author

Listed:
  • John P. Haisken-DeNew

    (SELAPO (University of Munich))

  • Klaus F. Zimmermann

    (SELAPO (University of Munich) and CEPR (London))

Abstract

The paper investigates the relative importance of trade and immigration for earnings and job mobility of German male workers. Using panel data, changes of workplaces within the firm as between the firms are separated from occupational changes. Various subgroups are investigated, differentiating between blue and white collar workers as according to job level and work experience. The general finding is that trade matters more than migration, which is contrary to the public attention both determinants receive, at least in Germany. While wages are affected negatively by a relative increase in imports, immigration exhibits a positive effect. Trade seems to depress occupational mobility and internal movement, but stimulates inter-firm changes. Immigration affects intra-firm changes negatively, but is largely unrelated with other aspects of labor mobility.

Suggested Citation

  • John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Wage and Mobility Effects of Trade and Migration," Working Papers _001, SELAPO Center for Human Resources.
  • Handle: RePEc:wop:selapo:_001
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    File URL: ftp://ftp.selapo.vwl.uni-muenchen.de/pub/Archiv/95trade.ps.gz
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    Citations

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    Cited by:

    1. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
    2. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-41.
    3. Thomas Bauer, 1998. "Do Immigrants Reduce Natives' Wages? Evidence from Germany," Departmental Working Papers 199802, Rutgers University, Department of Economics.
    4. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83 World Scientific Publishing Co. Pte. Ltd..
    5. Jääskelä, Jarkko, 1997. "Incomplete insurance market and its policy implication within European Monetary Union," Research Discussion Papers 8/1997, Bank of Finland.
    6. Franz, Wolfgang, 1999. "Real and monetary challenges to wage policy in Germany at the turn of the millennium: technical progress, globalization and European Monetary Union," ZEW Discussion Papers 99-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Haggeney, Isabelle & Fitzenberger, Bernd & Ernst, Michaela, 1998. "Wer ist noch Mitglied in den Gewerkschaften? Eine Panelanalyse für Westdeutschland," ZEW Discussion Papers 98-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Herbert Brücker, 2003. "Die Arbeitsmarkteffekte der Ost-West-Migration: theoretische Überlegungen, Simulationen und empirische Befunde," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 579-593.
    9. Wolfgang Pollan, 2000. "The Economic Effects of Immigration. A Review of the Literature," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(2), pages 95-112, February.
    10. Daniel S. Hamermesh, 1997. "Immigration and the Quality of Jobs," NBER Working Papers 6195, National Bureau of Economic Research, Inc.
    11. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series 341, CESifo Group Munich.
    12. Brücker, Herbert & Fachin, Stefano & Venturini, Alessandra, 2011. "Do foreigners replace native immigrants? A panel cointegration analysis of internal migration in Italy," Economic Modelling, Elsevier, vol. 28(3), pages 1078-1089, May.
    13. Venturini, Alessandra & Villosio, Claudia, 2002. "Are Immigrants Competing with Natives in the Italian Labour Market? The Employment Effect," IZA Discussion Papers 467, Institute for the Study of Labor (IZA).
    14. Flam, Harry, 2003. "Turkey and the EU: Politics and Economics of Accession," Seminar Papers 718, Stockholm University, Institute for International Economic Studies.
    15. Bauer, Thomas K. & Zimmermann, Klaus F., 2000. "Immigration Policy in Integrated National Economies," IZA Discussion Papers 170, Institute for the Study of Labor (IZA).
    16. Yaya, Mehmet-Erdem, 2005. "Immigration, Trade and Wages in Germany," MPRA Paper 505, University Library of Munich, Germany, revised Jun 2006.

    More about this item

    Keywords

    panel data; probit model; trade; wages; occupational mobility; international migration;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • F10 - International Economics - - Trade - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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