Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys

Ebenstein, Avraham Y.; Harrison, Ann E.; McMillan, Margaret; Phillips, Shannon

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Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys

NBER Working Paper No. w15107

46 Pages Posted: 30 Jun 2009 Last revised: 13 Apr 2025

See all articles by Avraham Y. Ebenstein

Avraham Y. Ebenstein

Harvard University; University of California, Berkeley - Department of Economics

Ann E. Harrison

University of California, Berkeley; National Bureau of Economic Research (NBER)

Margaret McMillan

Tufts University - Department of Economics; International Food Policy Research Institute (IFPRI); National Bureau of Economic Research (NBER)

Shannon Phillips

Boston College

There are 2 versions of this paper

Date Written: June 2009

Abstract

We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure to globalization is associated with significant wage effects, while industry exposure has no significant impact. We present evidence that globalization has put downward pressure on worker wages through the reallocation of workers away from higher wage manufacturing jobs into other sectors and other occupations. Using a panel of workers, we find that occupation switching due to trade led to real wage losses of 12 to 17 percentage points.

Suggested Citation: Suggested Citation

Ebenstein, Avraham Y. and Harrison, Ann E. and McMillan, Margaret and Phillips, Shannon, Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys (June 2009). NBER Working Paper No. w15107, Available at SSRN: https://ssrn.com/abstract=1426458