Services Input Intensity and US Manufacturing Employment: Responses to the China Shock
25 Pages Posted: 28 Jul 2017
Date Written: July 2017
We present evidence that the negative effect of the China shock on US manufacturing employment is lower for industries that use services inputs more intensively. Different potential mechanisms for this finding are analyzed. This reveals significant heterogeneity across different types of services and their potential role in affecting labor demand and supply responses to greater import competition.
Keywords: Manufacturing Employment, China Shock, Import Competition, Servicification, Services
JEL Classification: F16; L8
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