Perceived Job Insecurity, Unemployment Risk and International Trade - A Micro-Level Analysis of Employees in German Service Industries
- Publisher: CAWM Münster
Deutschland | C23 | J63 | Außenhandelssektor | F16 | Beschäftigungssicherung | perceived job insecurity | International trade, perceived job insecurity, employment status | Internationale Wirtschaft | employment status | International trade,perceived job insecurity,employment status | Wahrnehmung | Arbeitslosigkeit | International trade
The present paper investigates the impact of international trade on individual labour market outcomes in the German service sector for the period 1995-2006. Combiningmicro-level data from the German Socio-Economic Panel (SOEP) and industry-level trade data from input-output tables, we examine the impacts of international trade on (1) the individually reported fear of job loss and (2) job-to-unemployment transitions. We therefore apply both a "subjective" and a more "objective" measure of job insecurity. Our results indicate that international trade does indeed affect labour market outcomes in German service industries. Employees in trading service sectors face both a higher subjective and objective unemployment risk, regardless of their skill level. Moreover, growth in real net exports is positively correlated with perceived job insecurity and individual unemployment risk.