Dokument: Three Essays on the Impact of International Trade on the German Labor Market

Titel:Three Essays on the Impact of International Trade on the German Labor Market
URL für Lesezeichen:https://docserv.uni-duesseldorf.de/servlets/DocumentServlet?id=52986
URN (NBN):urn:nbn:de:hbz:061-20200427-095248-3
Kollektion:Dissertationen
Sprache:Englisch
Dokumententyp:Wissenschaftliche Abschlussarbeiten » Dissertation
Medientyp:Text
Autor: Borrs, Linda [Autor]
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Dateien vom 14.04.2020 / geändert 14.04.2020
Beitragende:Prof. Dr. Südekum, Jens [Betreuer/Doktorvater]
JProf. Dr. Dauth, Wolfgang [Gutachter]
Dewey Dezimal-Klassifikation:300 Sozialwissenschaften, Soziologie » 330 Wirtschaft
Beschreibung:This doctoral thesis provides new empirical evidence on the impact of international trade on the German labor market. In three chapters, I focus on the distributional effects associated with different forms of trade between Germany and the countries in the East, and the Czech Republic in particular.

The first chapter, which is joint work with Florian Knauth, addresses the question of whether the increase in trade with China and Eastern Europe increases wage inequality in Germany. In particular, we examine through which channels trade affects wage inequality in German manufacturing industries. Does it affect inequality through changes in firm-specific pay premia, worker-specific wages, or assortative matching between high-wage workers and high-wage firms? For the empirical analyses, we use a large sample of administrative data on German workers in the manufacturing sector and decompose their wages into firm and worker components. Our results show that the rising market access and competitiveness of the East plays a significant role in the rising wage inequality within German manufacturing industries. The rise in wage inequality is attributable to a more dispersed worker-wage component and partly to more assortative matching. Trade does not explain changes in firm-wage premia.

In the second chapter, which is co-authored with Johann Eppelsheimer, we examine the impact of foreign direct investment (FDI) by German firms in the Czech Republic on their workers’ job stability. We argue that firm-internal job transitions are an important channel for firms to adjust their workforce to changes in the labor demand following FDI. For the empirical analyses, we use an administrative linked employer-employee data set on German firms with affiliates in the Czech Republic as well as a set of German control firms that never invested abroad. After matching investing and control firms with equal probabilities to invest, we estimate the effects of FDI on individual job stability using proportional hazard models. In particular, we estimate the impact of FDI on the likelihood that workers experience firm-internal up- or downgrades, i.e., transitions into jobs with more or less analytical and interactive tasks. We find that internal restructuring is an important channel through which firms adjust to FDI-induced changes in labor demand. In particular, our results show that FDI does not increase the hazard that workers and firms separate. Rather, FDI has temporal lock-in effects and increases the likelihood of firm-internal job up- and downgrades. Moreover, we find that job transitions become significantly more likely two years after the investment, and that transitions are more likely for workers with a larger share of non-routine and interactive tasks.

In the third chapter, I expand on the insights from Chapter 2 and estimate the impact of FDI on workers’ labor market outcomes over their careers. To provide comprehensive insights into the longer-run effects of FDI, I study FDI-induced changes in workers’ annual earnings and trace them back to changes in their daily wages on the one hand and their number of days in employment on the other. Using the matched samples of investing and control firms from Chapter 2, I follow a fixed cohort of workers and estimate the effects of FDI using an event study difference-in-difference (DiD) design. This chapter’s results show that independent of whether workers stay with their employer, effects of FDI on their labor market outcomes are small. For low- and high-skilled workers, I do not find any effect of FDI on annual earnings. For medium-skilled workers, FDI has a positive effect on annual earnings, mainly because it increases their days in employment relative to the control group. Among the workers that stay with their employer after FDI, I find benefits from FDI for low- and medium-skilled workers in terms of higher average daily wages, and high-skilled workers in terms of more days in employment compared to the control group.
Lizenz:In Copyright
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Fachbereich / Einrichtung:Wirtschaftswissenschaftliche Fakultät
Dokument erstellt am:27.04.2020
Dateien geändert am:27.04.2020
Promotionsantrag am:28.08.2019
Datum der Promotion:09.12.2019
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