25 Jahre IWH

Veranstaltung
14
Nov 2016

14:15 - 15:45

Trade Exposure and the Decline in Collective Bargaining: Evidence from Germany

We analyse whether the increase in trade exposure induced by the rise of China and the transformation of Eastern Europe has been a driver of the severe decline in collective bargaining coverage rates among German establishments from the mid 1990s onwards, which has been identified as a major source of rising wage inequality in Germany.

Speaker
Professor Dr. Daniel Baumgarten , Ludwig-Maximilians-Universität München
Location
IWH-Konferenzsaal
Professor Dr. Daniel Baumgarten

Über den Autor

Professor Dr. Daniel Baumgarten

Der Forschungsschwerpunkt von Daniel Baumgarten ist die empirische Außenhandels- und Arbeitsmarktökonomik, mit einem besonderen Fokus auf den Arbeitsmarkteffekten der Globalisierung. Seine Arbeiten befassen sich z.B. mit dem Beitrag vom internationalen Handel zur Lohnungleichheit, mit den Lohn- und Beschäftigungseffekten der Verlagerung von Produktionsprozessen (Offshoring) oder mit den Auswirkungen ausländischer Direktinvestitionen auf die Beschäftigungssicherheit der Arbeitnehmer.

We analyse whether the increase in trade exposure induced by the rise of China and the transformation of Eastern Europe has been a driver of the severe decline in collective bargaining coverage rates among German establishments from the mid 1990s onwards, which has been identified as a major source of rising wage inequality in Germany. For identification, we exploit cross-industry variation in trade exposure, and, adopting the instrumental variable strategy of Autor, Dorn and Hanson (2013), we use trade flows of other high-income countries as instruments for German import and export exposure. Our results suggest that increased import exposure is associated with an increase in the probability of German firms to leave sectoral bargaining agreements.

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