The China Syndrome: Local Labor Market Effects of Import Competition in the United States
We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization and instrumenting for US imports using changes in Chinese imports by other hig...
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| Veröffentlicht in: | The American economic review 2013-10, Vol.103 (6), p.2121-2168 |
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| container_title | The American economic review |
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| creator | Autor, David H. Dorn, David Hanson, Gordon H. |
| description | We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization and instrumenting for US imports using changes in Chinese imports by other high-income countries. Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house importcompeting manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets. |
| doi_str_mv | 10.1257/aer.103.6.2121 |
| format | Article |
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Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house importcompeting manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets.</description><subject>China</subject><subject>Competition</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Economics</subject><subject>Employment</subject><subject>Employment statistics</subject><subject>Free trade</subject><subject>Import competition</subject><subject>Imports</subject><subject>Industrial market</subject><subject>International relations</subject><subject>International trade</subject><subject>Labor economics</subject><subject>Labor market</subject><subject>Labour market</subject><subject>Local labor markets</subject><subject>Low income groups</subject><subject>Manufacturing</subject><subject>Manufacturing industries</subject><subject>Outsourcing</subject><subject>Political economy</subject><subject>Population</subject><subject>Productivity</subject><subject>Social 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| source | Jstor Complete Legacy; American Economic Association; EBSCOhost Business Source Complete |
| subjects | China Competition Economic models Economic theory Economics Employment Employment statistics Free trade Import competition Imports Industrial market International relations International trade Labor economics Labor market Labour market Local labor markets Low income groups Manufacturing Manufacturing industries Outsourcing Political economy Population Productivity Social security Specialization Studies Trade Trade agreements Trade liberalization U.S.A Unemployment US exports Wage differential Wages Wages & salaries Workers' participation |
| title | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
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