Exporting and labor demand : micro-level evidence from Germany


Lichter, Andreas ; Peichl, Andreas ; Siegloch, Sebastian


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URL: https://madoc.bib.uni-mannheim.de/35933
URN: urn:nbn:de:bsz:180-madoc-359338
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: ZEW Discussion Papers
Volume: 14-013
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
School of Law and Economics > VWL, Wirtschaftspolitik u. Politische Ökonomie (Juniorprofessur) (Siegloch 2014-2018)
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: F16 , F66 , J23,
Keywords (English): Trade , export , labor demand , wage elasticity , administrative microdata
Abstract: It is widely believed that globalization affcts the extent of employment and wage responses to economic shocks. To provide evidence for this, we analyze the effect of firms' exporting behavior on the elasticity of labor demand. Using rich, German administrative linked employer-employee panel data from 1996 to 2008, we explicitly control for self-selection into exporting and endogeneity concerns. In line with our theoretical model, we find that exporting at both the intensive and extensive margins significantly increases the (absolute value of the) unconditional own-wage labor demand elasticity. This is not only true for the average worker, but also for different skill groups. For the median firm, the elasticity is three-quarters higher when comparing exporting to nonexporting firms.

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Lichter, Andreas ; Peichl, Andreas ; Siegloch, Sebastian (2014) Exporting and labor demand : micro-level evidence from Germany. Open Access ZEW Discussion Papers Mannheim 14-013 [Working paper]
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