{"id":53953,"date":"2023-12-01T18:14:33","date_gmt":"2023-12-01T17:14:33","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/trade-costs-in-services-firm-survival-firm-growth-and-implied-changes-in-employment\/"},"modified":"2024-11-07T06:12:06","modified_gmt":"2024-11-07T05:12:06","slug":"trade-costs-in-services-firm-survival-firm-growth-and-implied-changes-in-employment","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/53953\/","title":{"rendered":"Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-53953","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival.","onlinedate":"2019-12-18 12:00:00","lang":"English","publication_series":"","publication_date":"20191201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"48","keywords":"[\"Elasticity of substitution\",\"Firm-level evidence\",\"Gravity model\",\"Heterogenous firms\",\"Job flows\",\"Services trade\",\"Trade and employment\",\"Trade costs\"]","jelcodes":"[\"C15\",\"C21\",\"C25\",\"C23\",\"C26\",\"F14\",\"F16\",\"F66\",\"J21\",\"D21\",\"L20\",\"L80\"]","related_publications":"[]","pdf":380318,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"593","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2019-12-18 12:00:00","types":[44410],"research_groups":[3491],"collaboration":"","persons":[3547,3785,3907],"persons_data":"[{\"personId\":3547,\"personName\":\"Elisabeth Christen\",\"organisationNames\":[]},{\"personId\":3785,\"personName\":\"Michael Pfaffermayr\",\"organisationNames\":[]},{\"personId\":3907,\"personName\":\"Yvonne Wolfmayr\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Christen, E.<\\\/span><span>, Pfaffermayr, M.<\\\/span><span>, &amp; Wolfmayr, Y.<\\\/span> (2019). <span>Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (593). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/62269\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/62269<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Christen E<\\\/span><span>, Pfaffermayr M<\\\/span><span>, Wolfmayr Y<\\\/span>. <span class=\\\"title\\\"><span>Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2019 Dec;(593).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{29c346859d4f4615bdc8cbcb0626e3e4,<\\\/div><div>  title    = \\\"Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment\\\",<\\\/div><div>  abstract = \\\"This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival.\\\",<\\\/div><div>  keywords = \\\"Elasticity of substitution, Firm-level evidence, Gravity model, Heterogenous firms, Job flows, Services trade, Trade and employment, Trade costs, Elasticity of substitution, Firm-level evidence, Gravity model, Heterogenous firms, Job flows, Services trade, Trade and employment, Trade costs\\\",<\\\/div><div>  author   = \\\"Elisabeth Christen and Michael Pfaffermayr and Yvonne Wolfmayr\\\",<\\\/div><div>  note     = \\\"Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment\\\",<\\\/div><div>  year     = \\\"2019\\\",<\\\/div><div>  month    = dec,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment<\\\/p><p>AU  - Christen, Elisabeth<\\\/p><p>AU  - Pfaffermayr, Michael<\\\/p><p>AU  - Wolfmayr, Yvonne<\\\/p><p>N1  - Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment<\\\/p><p>PY  - 2019\\\/12<\\\/p><p>Y1  - 2019\\\/12<\\\/p><p>N2  - This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival.<\\\/p><p>AB  - This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival.<\\\/p><p>KW  - Elasticity of substitution<\\\/p><p>KW  - Firm-level evidence<\\\/p><p>KW  - Gravity model<\\\/p><p>KW  - Heterogenous firms<\\\/p><p>KW  - Job flows<\\\/p><p>KW  - Services trade<\\\/p><p>KW  - Trade and employment<\\\/p><p>KW  - Trade costs<\\\/p><p>KW  - Elasticity of substitution<\\\/p><p>KW  - Firm-level evidence<\\\/p><p>KW  - Gravity model<\\\/p><p>KW  - Heterogenous firms<\\\/p><p>KW  - Job flows<\\\/p><p>KW  - Services trade<\\\/p><p>KW  - Trade and employment<\\\/p><p>KW  - Trade costs<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Trade Costs in Services. 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