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Sebastian Findeisen (Uni Mannheim) “Adjusting to globalization ‐ Evidence from worker‐establishment matches in Germany”

The next meeting of BeNA in Summer Semester 2016 is taking place on Wednesday, June 22th, 6.15-7.45 pm at DIW Berlin, Room 2.026 (Schmoller).

We are glad to welcome Sebastian Findeisen (University of Mannheim) who will present his paper “Adjusting to globalization ‐ Evidence from worker‐establishment matches in Germany” (joint with Wolfgang Dauth and Jens Südekum). Please see the abstract below. After the meeting we are all going out for a dinner. Everyone is welcome to join.

We would also like to encourage you to talk with Sebastian about your research. In order to set up an appointment, please pick a time slot via Doodle. The office hour will take place at DIW, in the room 2.2.20a. For further information, please contact Jan Marcus (jmarcus@diw.de).

For all upcoming talks in the summer term have a look at the semester program.

Abstract “Adjusting to globalization ‐ Evidence from worker‐establishment matches in Germany” (joint with Wolfgang Dauth and Jens Südekum)

This paper addresses the impact of rising international trade exposure on individual earnings profiles in heterogeneous worker-establishment matches. We exploit rich panel data on job biographies of manufacturing workers in Germany, and apply a high-dimensional fixed effects approach to analyze endogenous mobility between plants, industries, and regions in response to trade shocks. Rising import penetration reduces earnings within job spells, and it induces workers to leave the exposed industries. Intra-industry mobility to other firms or regions are far less common adjustments. This induced industry mobility mitigates the adverse impacts of import shocks in the workers’ subsequent careers, but their cumulated earnings over a longer time horizon are still negatively affected. By contrast, we find much less evidence for sorting into export-oriented industries, but the earnings gains mostly arise within job spells. These results point at an asymmetry in the individual labour market response to trade shocks: Import shocks trigger substantial “push effects”, whereas the “pull effects” of export shocks are weaker.