Wage and Mobility Effects of Trade and Migration

The paper investigates the relative importance of trade and immigration for earnings and job mobility of German male workers. Using panel data, changes of workplaces within the firm as between the firms are separated from occupational changes. Various subgroups are investigated, differentiating between blue and white collar workers as 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 with other aspects of labor mobility.