Industry Mix, Local Labor Markets, and the Incidence of Trade Shocks
Steffen Müller, Jens Stegmaier, Moises Yi
Journal of Labor Economics,
forthcoming
Abstract
We analyze how skill transferability and the local industry mix affect the adjustment costs of workers hit by a trade shock. Using German administrative data and novel measures of economic distance we construct an index of labor market absorptiveness that captures the degree to which workers from a particular industry are able to reallocate into other jobs. Among manufacturing workers, we find that the earnings loss associated with increased import exposure is much higher for those who live in the least absorptive regions. We conclude that the local industry composition plays an important role in the adjustment processes of workers.
Read article
Bank Failures, Local Business Dynamics, and Government Policy
Salvador Contreras, Manthos D. Delis, Amit Ghosh, Iftekhar Hasan
Small Business Economics,
No. 4,
2022
Abstract
Using MSA-level data over 1994–2014, we study the effect of bank failures on local business dynamics, in the form of net business formation and net job creation. We find that at least one bank failure in the metropolitan statistical area (MSA) with the mean population prevents approximately 475 net businesses from forming in that area, compared with MSAs that experience no bank failures, ceteris paribus. The equivalent effect on net job creation is 16,433 net job losses. Our results are even stronger for small businesses, which are usually more dependent on bank-firm relationships. These effects point to significant welfare losses stemming from bank failures, highlighting an important role for government intervention. We show that the Troubled Asset Relief Program (TARP) is effective in reducing the negative effects of bank failures on local business dynamics. This positive effect of TARP is quite uniform across small and large firms.
Read article
Homepage
Gas Storages full – economic outlook less gloomy The severe slump in the German economy expected last fall has not...
See page
IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
See page
IWH Treuhand Database
IWH Treuhand Privatisation Micro Database The IWH Treuhand Micro Database is a new...
See page
Archive
Media Response Archive ...
See page
Wage and Employment Effects of Insolvencies
Wage and employment effects of bankruptcies Although the consequences of...
See page
Weigt
13. IWH/IAB-Workshop zur Arbeitsmarktpolitik – ein Tagungsbericht ...
See page
CompNet Database
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
See page
Müller ref
Selected Publications ...
See page