Jobs gained and lost through trade: The case of Germany
The nature of international trade has changed significantly. For centuries, trade concentrated on the exchange of finished goods. It now increasingly involves bits of value that are added at different locations to combine into one final product. Therefore, trade in functions or tasks are of growing importance and exports of final goods are no longer an appropriate indicator of the international competitiveness of countries. The process of globalisation has an impact on domestic labour markets. Due to the increasing integration of the world economy, some jobs are gained and others lost in any open economy. Concerns about German workers losing jobs to foreign competition dominate many political debates. Many people fear that being integrated in the world economy is disadvantageous for Germany. In this paper, we use input-output analysis to explore the relationship between trade and both job creation and job destruction in Germany over the period 1995-2006. We present two main findings. First, in an autarkic situation, around 7.0 per cent of total German jobs would not have existed at all in 2006. The job effect of trade was positive in every reporting year. Second, the manufacturing sector contributed most to this positive job effect, but also in the service sector, many jobs were retained through trade.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: Platz der Göttinger Sieben 3, 37073 Göttingen|
Web page: http://www.cege.wiso.uni-goettingen.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alexander Hijzen & Holger Görg & Robert C. Hine, 2004.
"International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom,"
Discussion Papers of DIW Berlin
437, DIW Berlin, German Institute for Economic Research.
- Alexander Hijzen & Holger Görg & Robert C. Hine, 2005. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Economic Journal, Royal Economic Society, vol. 115(506), pages 860-878, October.
- Hijzen, Alexander & Görg, Holger & Hine, Robert C., 2004. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," IZA Discussion Papers 1249, Institute for the Study of Labor (IZA).
- Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
- Koen De Backer & Norihiko Yamano, 2007. "The Measurement of Globalisation using International Input-Output Tables," OECD Science, Technology and Industry Working Papers 2007/8, OECD Publishing.
- Danièle Meulders & François Rycx & Robert Plasman, 2004. "Minimum Wages, low pay and unemployment: introduction," ULB Institutional Repository 2013/7704, ULB -- Universite Libre de Bruxelles.
- Mary Amiti & Shang-Jin Wei, 2004.
"Fear of Service Outsourcing: Is It Justified?,"
NBER Working Papers
10808, National Bureau of Economic Research, Inc.
- Robert E. Baldwin, 1995.
"The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages,"
NBER Working Papers
5037, National Bureau of Economic Research, Inc.
- Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," OECD Jobs Study Working Papers 4, OECD Publishing.
- Erica L. Groshen & Bart Hobijn & Margaret M. McConnell, 2005. "U.S. jobs gained and lost through trade: a net measure," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 11(Aug).
- Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004.
"The Muddles over Outsourcing,"
- Hoekman & Bernard & Winters, L. Alan, 2005.
"Trade and employment : stylized facts and research findings,"
Policy Research Working Paper Series
3676, The World Bank.
- Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs.
- Martin Falk & Yvonne Wolfmayr, 2005. "Employment Effects of Outsourcing to Low Wage Countries. Empirical Evidence for EU Countries," WIFO Working Papers 262, WIFO.
- Margit Molnar & Nigel Pain & Daria Taglioni, 2007. "The Internationalisation of Production, International Outsourcing and Employment in the OECD," OECD Economics Department Working Papers 561, OECD Publishing.
- Feenstra, Robert C & Hanson, Gordon H, 1996.
"Globalization, Outsourcing, and Wage Inequality,"
American Economic Review,
American Economic Association, vol. 86(2), pages 240-45, May.
- Hildegunn Kyvik Nordås & Sébastien Miroudot & Przemyslaw Kowalski, 2006. "Dynamic Gains from Trade," OECD Trade Policy Papers 43, OECD Publishing.
- Kowalewski, Julia, 2009. "Methodology of the input-output analysis," HWWI Research Papers 1-25, Hamburg Institute of International Economics (HWWI).
- Danièle Meulders & Robert Plasman & François Rycx, 2004. "Minimum wages, low pay and unemployment," ULB Institutional Repository 2013/7740, ULB -- Universite Libre de Bruxelles.
- Falk, Martin & Wolfmayr, Yvonne, 2008. "Services and materials outsourcing to low-wage countries and employment: Empirical evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 38-52, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:cegedp:95. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.