Template-Type: ReDIF-Paper 1.0
Title: Adjusting to Globalization in Germany
Author-Name: Wolfgang Dauth
Author-Email: wolfgang.dauth@uni-wuerzburg.de
Author-Name: Sebastian Findeisen
Author-Email: findeisen@uni-mannheim.de
Author-Name: Jens Suedekum
Author-Email: suedekum@dice.hhu.de
Classification-JEL: F16, J31, R11
Keywords: Trade Adjustments, Worker Mobility, Frictional Labor Markets

Abstract: We study the impact of trade exposure on the job biographies of 2.4 million manufacturing
workers in Germany. Rising export opportunities lead to two equally important
sources of earnings gains: on-the-job, and via employer switches within the same
industry. Highly skilled workers benefit the most. Import shocks mostly hurt lowskilled
workers, especially when they possess lots of industry-specific human capital.
They also destroy workers’ rents when separating from high-wage plants, and they
leave strongly scarring effects in the event of a mass layoff. We connect our results to
the growing theoretical literature on the labor market effects of trade.

Note: 
Length: 55
Creation-Date: 2019-08
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp118
Handle: RePEc:bon:boncrc:CRCTR224_2019_118