Adjusting to Globalization in Germany

Abstract

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Collateral Damage? Labour Market Effects of Competing with China—at Home and Abroad

“…These workers also faced an elevated risk of receiving public disability benefits vis-à-vis other individuals working in less exposed manufacturing industries. Dauth et al (2019) examine the impact of rising international trade exposure on individual earning profiles of German manufacturing workers. They complement Autor et al (2014) by focusing on both imports and export shocks, not only from China but also from Eastern European countries, and by studying the effects among heterogeneous employer-employee matches.…”

“…Due to data restrictions, it is not possible to use the initial domestic absorption to normalise each industry's imports, as in Autor et al (2014). We thus follow Dauth et al (2019) and use the total wage bill instead.…”

“…In this context, a number of recent studies has examined the micro-level effects of rising imports on different groups of workers (e.g., Autor et al, 2014 andDauth et al, 2019), generally focusing on the cases of large developed economies or countries with specialisation patterns different from those of emerging economies. This research has documented substantial adjustment costs in the domestic industries (and their workers) most exposed to imports from developing countries, in particular China.…”

Globalization and mental distress

“…For recent theoretical models on the psychological implications of job satisfaction, see Wälde (2018) and Iossa and Sacco (2018). tition for the labor markets of developed countries (e.g, Autor et al, , 2014Autor et al, , 2015Dauth et al, 2014Dauth et al, , 2018Felbermayr et al, 2011;Pierce and Schott, 2016;Utar, 2014Utar, , 2018; see Dorn, 2018, for updated reviews). These papers show that workers employed in import competing industries, or regions, bear significant adjustment costs to import competition, in terms of higher probability of job displacement and lower wages.…”

Flying with the Dragon: Estimating Developing Countries’ Gains from China's Imports

“…Autor et al (2013) concluded that increasing imports from China initiated an increase in unemployment and reduced wages in US local labor markets that hosted import-competing manufacturing industries. Many other researchers employed a similar methodology to study the import competition effect in Germany (Dauth et al, 2014(Dauth et al, , 2018, Spain (Donoso et al, 2015), Portugal (Pereira, 2016), France (Malgouyres, 2017) and the Organisation for Economic Co-operation and Development (OECD) countries (Thewissen and van Vliet, 2019), and reached similar conclusions.…”