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 local U.S. labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization while instrumenting for imports using changes in Chinese imports by industry...
| Main Authors: | , , |
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| Format: | Working Paper |
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Cambridge, MA: Department of Economics, Massachusetts Institute of Technology
2012
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| Online Access: | http://hdl.handle.net/1721.1/71139 |
| _version_ | 1826205145745063936 |
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| author | Autor, David Dorn, David Hanson, Gordon |
| author_facet | Autor, David Dorn, David Hanson, Gordon |
| author_sort | Autor, David |
| collection | MIT |
| description | We analyze the effect of rising Chinese import competition between 1990 and 2007 on local U.S. labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization while instrumenting for imports using changes in Chinese imports by industry to other high-income countries. Rising exposure increases unemployment, lowers labor force participation, and reduces wages in local labor markets. Conservatively, it explains one-quarter of the contemporaneous aggregate decline in U.S. manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in exposed labor markets. |
| first_indexed | 2024-09-23T13:07:28Z |
| format | Working Paper |
| id | mit-1721.1/71139 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T13:07:28Z |
| publishDate | 2012 |
| publisher | Cambridge, MA: Department of Economics, Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/711392019-04-12T21:01:08Z The China Syndrome: Local Labor Market Effects of Import Competition in the United States Autor, David Dorn, David Hanson, Gordon Trade Flows, Import Compettition, Local Labor Markets, China We analyze the effect of rising Chinese import competition between 1990 and 2007 on local U.S. labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization while instrumenting for imports using changes in Chinese imports by industry to other high-income countries. Rising exposure increases unemployment, lowers labor force participation, and reduces wages in local labor markets. Conservatively, it explains one-quarter of the contemporaneous aggregate decline in U.S. manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in exposed labor markets. 2012-06-13T21:45:22Z 2012-06-13T21:45:22Z 2012-05-02 Working Paper http://hdl.handle.net/1721.1/71139 Working paper, Massachusetts Institute of Technology, Dept. of Economics;12-12 An error occurred on the license name. An error occurred getting the license - uri. application/pdf Cambridge, MA: Department of Economics, Massachusetts Institute of Technology |
| spellingShingle | Trade Flows, Import Compettition, Local Labor Markets, China Autor, David Dorn, David Hanson, Gordon The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title_full | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title_fullStr | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title_full_unstemmed | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title_short | The China Syndrome: Local Labor Market Effects of Import Competition in the United States |
| title_sort | china syndrome local labor market effects of import competition in the united states |
| topic | Trade Flows, Import Compettition, Local Labor Markets, China |
| url | http://hdl.handle.net/1721.1/71139 |
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