Worker-Level Consequences of Import Shocks

51 Pages Posted: 18 Jul 2016

Abstract

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 to other EU countries. 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.

Keywords: offshoring, import competition, employment, earnings

JEL Classification: F16, J23, J31, J63, L23

Suggested Citation

Nilsson-Hakkala, Katariina and Huttunen, Kristiina, Worker-Level Consequences of Import Shocks. IZA Discussion Paper No. 10033, Available at SSRN: https://ssrn.com/abstract=2810424 or http://dx.doi.org/10.2139/ssrn.2810424

Kristiina Huttunen

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
36
Abstract Views
472
PlumX Metrics