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Regional Origins of Employment Volatility : Evidence from German States

Author: Claudia M Buch; Martin Schlotter
Publisher: München : CESifo, Center for Economic Studies & Ifo Institute for economic research, 2008.
Series: CESifo working paper series, 2296.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
Openness for trade can have positive welfare effects in terms of higher growth. But increased openness may also increase uncertainty through a higher volatility of employment. We use regional data from Germany to test whether openness for trade has an impact on volatility. We find a downward trend in the unconditional volatility of employment, which has been interrupted by the re-unification period. Patterns are  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Claudia M Buch; Martin Schlotter
OCLC Number: 429205046
Description: 1 online resource (Text.)
Series Title: CESifo working paper series, 2296.
Responsibility: Claudia M. Buch, Martin Schlotter.

Abstract:

Openness for trade can have positive welfare effects in terms of higher growth. But increased openness may also increase uncertainty through a higher volatility of employment. We use regional data from Germany to test whether openness for trade has an impact on volatility. We find a downward trend in the unconditional volatility of employment, which has been interrupted by the re-unification period. Patterns are similar to those for output volatility. The conditional volatility of employment, measuring idiosyncratic developments across states, in contrast, has remained fairly unchanged. In contrast to evidence for the US, we do not find evidence for a significant link between employment volatility and trade openness.

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