The effect of import competition across occupations

IF 3.8 1区 经济学 Q1 ECONOMICS
Sergi Basco , Maxime Liégey , Martí Mestieri , Gabriel Smagghue
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引用次数: 0

Abstract

We empirically examine the effect of import competition on worker earnings across occupations. To guide our analysis, we develop a stylized model that emphasizes industries using occupations in different intensities. We show that an occupational exposure index summarizes the overall exposure of an occupation to industry-level trade shocks. Proxying these industry-level trade shocks with rising Chinese competition and using nationally representative matched employer–employee French panel data from 1993 through 2015, we obtain evidence consistent with the predictions of the model. We find that workers initially employed in occupations highly exposed to Chinese competition – as measured by our occupational exposure index – experience larger declines in earnings. The magnitude of our estimates implies that the effect of rising Chinese competition on workers’ earnings due to differences in workers’ occupations is of comparable magnitude to the effect of workers’ sector of employment. This finding suggests that accounting for the distributional effects of trade across occupations is quantitatively important.
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来源期刊
CiteScore
5.80
自引率
6.10%
发文量
98
期刊介绍: The Journal of International Economics is intended to serve as the primary outlet for theoretical and empirical research in all areas of international economics. These include, but are not limited to the following: trade patterns, commercial policy; international institutions; exchange rates; open economy macroeconomics; international finance; international factor mobility. The Journal especially encourages the submission of articles which are empirical in nature, or deal with issues of open economy macroeconomics and international finance. Theoretical work submitted to the Journal should be original in its motivation or modelling structure. Empirical analysis should be based on a theoretical framework, and should be capable of replication.
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