DP1318 Wage and Mobility Effects of Trade and Migration

Author(s): Klaus F Zimmermann
Publication Date: January 1996
Keyword(s): International Migration, Occupational Mobility, Panel Data, Probit Model, Trade, Wages
JEL(s): C23, C35, F10, F22, J31, J62
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1318

The paper investigates the relative importance of trade and immigration for earnings and job mobility of male German workers. Using panel data, changes of workplace within a firm and between firms are separated from occupational changes. Various subgroups are investigated, differentiating between blue and white collar workers according to job level and work experience. The general finding is that trade matters more than migration, which is contrary to the public attention both determinants receive, at least in Germany. While wages are affected negatively by a relative increase in imports, immigration exhibits a positive effect. Trade seems to depress occupational mobility and internal movement, but stimulates inter-firm changes. Immigration affects intra-firm changes negatively, but is largely unrelated to other aspects of labour mobility.