Download This PaperImport Competition and the Great U.S. Employment Sag of the 2000s
University of Zurich, UBS International Center of Economics in Society, Working Paper No. 13
46 Pages Posted: 17 Dec 2015
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Import Competition and the Great U.S. Employment Sag of the 2000s
Import Competition and the Great U.S. Employment Sag of the 2000s
Import Competition and the Great U.S. Employment Sag of the 2000s
Import Competition and the Great U.S. Employment Sag of the 2000s
Import Competition and the Great U.S. Employment Sag of the 2000s
Date Written: September 2015
Abstract
Even before the Great Recession, U.S. employment growth was unimpressive. Between 2000 and 2007, the economy gave back the considerable employment gains achieved during the 1990s, with a historic contraction in manufacturing employment being a prime contributor to the slump. We estimate that import competition from China, which surged after 2000, was a major force behind both recent reductions in U.S. manufacturing employment and — through input-output linkages and other general equilibrium channels — weak overall U.S. job growth. Our central estimates suggest job losses from rising Chinese import competition over 1999 through 2011 in the range of 2.0 to 2.4 million.
Keywords: Trade flows, labor demand
JEL Classification: F16, J23
Suggested Citation: Suggested Citation
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
Brendan M. Price
Board of Governors of the Federal Reserve System ( email )
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Washington, DC 20551
United States