Chapter

Wage and Mobility Effects of Trade and Migration

John P. Haisken‐De New and Klaus F. Zimmermann

in Trade and Jobs in Europe

Published in print August 1999 | ISBN: 9780198293606
Published online August 2004 | e-ISBN: 9780191601262 | DOI: http://dx.doi.org/10.1093/0198293607.003.0008
 Wage and Mobility Effects of Trade and Migration

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The effects of migration and trade on the German labour market are examined using micro panel data. Male wages are negatively affected by the trade deficit ratio. An increase in trade deficit ratio — net imports divided by the output of the sector — will reduce wages; if wages are not downwardly flexible, jobs would be lost. Immigration has no effect on low-skilled workers but a positive effect on the wages of high-skilled workers. Trade affects labour mobility, with increasing imports adversely impacting occupational mobility and intra-firm flexibility.

Keywords: migration; international trade; labour market; Germany; labour mobility; wages

Chapter.  7754 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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