The Rise of the East and the Far East: German Labor Markets and Trade Integration

Dauth, Wolfgang; Findeisen, Sebastian; Suedekum, Jens

doi:10.1111/jeea.12092

Cited by 367 publications

(490 citation statements)

References 37 publications

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“…6 In line with previous studies (e.g. Autor et al 2014;Dauth et al 2014;Dauth et al 2016) we find that workers employed in industries that benefit from increasing export opportunities experience higher earnings, whereas workers employed in importcompeting industries suffer from lower earnings. We find that the negative effects of import competition are stronger for low-skilled workers.…”

supporting

confidence: 81%

All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner

Huber

Winkler

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may PRELIMINARY VERSIONInternational trade creates aggregate welfare gains in the long run. During the process of adjustment to trade, however, workers employed in importcompeting industries might face costs in the form of temporary unemployment or depressed wages. We examine the period of adjustment of the German economy to the increase of trade with China and former Soviet Union countries and focus on the following question: Can redistribution of gains and losses from trade between partners mitigate adverse effects on workers in importcompeting sectors? We find that due to the high level of assortative mating the trade shock affects partners similarly and this restricts the potential for redistribution. Nevertheless, couples can compensate on average 10% of the earnings losses of adversely affected workers by redistribution between partners. We then turn to the distributional consequences and find that the trade shock had a considerable inequality-increasing effect. Intra-household redistribution, however, did not help to dampen this effect. JEL-Classification: F16, J12, J31

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supporting

confidence: 81%

All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner

Huber

Winkler

2016

SSRN Journal

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“…Due to these changes, Chinese exporters may have benefited from the EURO introduction through substitution of import sources in some European countries (e.g. Dauth et al, 2014). To evaluate this possibility, GIPS countries' RCA for the years 1999-2001 is interacted with the WTO dummy.…”

Section: European Eventsmentioning

confidence: 99%

“…The sizable contribution of processing trade to China's overall export growth (Amiti and Freund, 2010), and the differential exporting behavior of private domestic and foreign-invested enterprises in China (Manova and Zhang, 2009), justify speculations that export market entry of these firms follows different rules than those derived from firm-level studies in high-income regions. 2 For instance, firms in emerging 1 See, for instance, Bernard et al (2006); Bloom et al (2011); Autor et al (2013Autor et al ( , 2014; Dauth et al (2014); Utar (2014Utar ( , 2015 for the most recent contributions.…”

Section: Introductionmentioning

confidence: 99%

US policy spillover(?) – China’s accession to the WTO and rising exports to the EU

Mau

2017

European Economic Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe paper offers a novel explanation for China's manufacturing exports performance after WTO entry. Building on stylized facts about low-wage country exporters, a theoretical model is developed to analyze reduced trade policy uncertainty. A global (non-destination specific) component of exporting fixed costs facilitates transmission of bilateral policy changes to multilateral export performance. The empirical analysis exploits the removal of US tariff uncertainty in conjunction with China's WTO accession, and examines its effect on China's exports to the EU. The results reveal that: (i) the structure of China's export boom to the EU conforms to the pattern of US tariff uncertainty; (ii) the adjustment takes place at the extensive margin; and (iii) the effect phases out after a few years. These findings have implications for the scope of international policy negotiations and provide suggestive evidence on the nature of fixed costs manufacturing firms in low-wage countries must overcome.JEL-Classification: F13, F14, D84, O24

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“…This is about twice the impact identified by ADH for the US. Dauth, Findeisen and Suedekum (2014) undertake a similar exercise for Germany, and find that increased exposure to imports from China reduces the manufacturing employment share in German local labor markets by about 0.14 percentage points, although Germany's improved export opportunities thanks to the rise of China compensate for this negative effect. We do not find that this is the case for Norway.…”

Section: Introductionmentioning

confidence: 99%