The Effects of Import Competition on Health in the Local Economy

32 Pages Posted: 3 Oct 2015 Last revised: 23 Apr 2016

See all articles by Matthew Lang

Matthew Lang

University of California, Riverside (UCR) - Department of Economics

T. Clay McManus

Xavier University

Georg Schaur

University of Tennessee, Knoxville - College of Business Administration - Department of Economics

Date Written: March 30, 2016

Abstract

We study the effects of Chinese import exposure in the US on self-reported health measures. We find that average mental, physical, and general health worsens in local labor markets exposed to greater import competition between 2000 and 2007. The effects are greatest for mental health. Moving a region from the 25th to 75th percentile of import exposure corresponds to a 5.5% increase in the time individuals report suffering from poor mental health, adding about 0.18 days per month. The effects are greatest for the employed, consistent with theory from the health literature pertaining to the documented effects of import competition on wages, employment and job security. These estimates provide direct evidence that trade affects welfare through changes in overall mental and physical well-being.

Keywords: Import Competition, Trade Liberalization, Mental Health

JEL Classification: F16, F66, J81, J32, L60

Suggested Citation

Lang, Matthew and McManus, T. Clay and Schaur, Georg, The Effects of Import Competition on Health in the Local Economy (March 30, 2016). Available at SSRN: https://ssrn.com/abstract=2668394 or http://dx.doi.org/10.2139/ssrn.2668394

Matthew Lang

University of California, Riverside (UCR) - Department of Economics ( email )

900 University Avenue
4136 Sproul Hall
Riverside, CA 92521
United States

T. Clay McManus (Contact Author)

Xavier University ( email )

Cincinnati, OH 45209
United States
5137454284 (Phone)

HOME PAGE: http://claymcmanus.com

Georg Schaur

University of Tennessee, Knoxville - College of Business Administration - Department of Economics ( email )

508 Stokely Management Center
Knoxville, TN 37996-0550
United States

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