Veranstaltung
14
Nov 2016

14:15 - 15:45
IWH Research Seminar

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.

Who
Professor Dr. Daniel Baumgarten  (Ludwig-Maximilians-Universität München)
Where
IWH conference room
Professor Dr. Daniel Baumgarten

Personal details

Daniel’s research interests are in the areas of empirical international trade and empirical labour economics, with a particular focus on the labour market effects of globalization. For example, he has been analysing issues such as the contribution of international trade to wage inequality, the wage and employment effects of offshoring, and the impact of foreign direct investment on employment security.

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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