Adjusting to Globalization in Germany
44 Pages Posted: 6 Feb 2018
We exploit rich worker-establishment data to trace the impact of rising international trade exposure in the job biographies of roughly 2.4 million manufacturing workers in Germany (1990–2010). To profit from export opportunities, workers respond by increased employer switching within industries. Highly skilled workers benefit the most from increased export exposure, consistent with an increase in skill demand. The incidence of import shocks falls mostly on low-skilled workers, as they are not able to adjust as well as medium- and high-skilled workers. Imports also destroy rents by workers at high-wage plants who separate from their original firm. We connect our results to the growing theoretical literature on the labor market effects of trade.
Keywords: international trade, individual labor market responses, work biographies, worker mobility, Germany
JEL Classification: F16, J31, R11
Suggested Citation: Suggested Citation