Worker-level consequences of import shocks
Nilsson Hakkala, Katariina; Huttunen, Kristiina (2016-05-16)
Nilsson Hakkala, Katariina
Huttunen, Kristiina
Valtion taloudellinen tutkimuskeskus VATT
16.05.2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2018042619077
https://urn.fi/URN:NBN:fi-fe2018042619077
Tiivistelmä
We analyse the effects of imports on employment and earnings by distinguishing between import competition in final products and firms' use of imports in production (offshoring). We use Finnish worker-firm data merged with product
-level trade data. We focus on Chinese imports and instrument them by changes in China's share of world exports. Both types of importing increase the job loss risk for all workers and, in particular, for workers in production occupations. An increase in import competition has larger negative effects than an increase in offshoring. Production workers suffer the largest earnings losses, while for high
-skilled workers the wage-effect is positive.
-level trade data. We focus on Chinese imports and instrument them by changes in China's share of world exports. Both types of importing increase the job loss risk for all workers and, in particular, for workers in production occupations. An increase in import competition has larger negative effects than an increase in offshoring. Production workers suffer the largest earnings losses, while for high
-skilled workers the wage-effect is positive.
Tutkimusteema
Labour market, Työmarkkinat
JEL
F160 - Trade and Labor Market Interactions, J230 - Employment Determination; Job Creation; Demand for Labor; Self-Employment, J310 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. (industry, schooling, experience, tenure, cohort, etc.), J630 - Labor Turnover; Vacancies; Layoffs (includes separations, hires, redundancy, job tenure, displaced workers), L240 - Contracting Out; Joint Ventures
Avainsanat
Offshoring, Import Competition, Employment, Earnings
Kokoelmat
- VATT Working Papers [160]