Competing with the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries

Political Science Research and Methods (2017)

18 Pages Posted: 9 Nov 2017

See all articles by Stefan Thewissen

Stefan Thewissen

Leiden University - Department of Economics, Students

Olaf van Vliet

Leiden University - Leiden Law School; Leiden University - Department of Economics

Date Written: November 7, 2017

Abstract

China’s rapid rise on the global economic stage has substantial and unequal employment effects in advanced industrialized democracies given China’s large volume of low-wage labor. Thus far, these effects have not been analyzed in the comparative political economy literature. Building on pooled time-series data, we analyze the effects of Chinese trade competition across 17 sectors in 18 countries. We devote attention to a new channel, increased competition from China in foreign export markets. Our empirical findings reveal overall employment declines in sectors more exposed to Chinese imports. Furthermore, our results suggest that employment effects are not equally shared across skill levels, as the share of hours worked worsens for low-skilled workers.

Keywords: globalisation, export competition, employment, labour markets, sectors

JEL Classification: C23; C53; F14; F16; F60; J21

Suggested Citation

Thewissen, Stefan and van Vliet, Olaf, Competing with the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries (November 7, 2017). Political Science Research and Methods (2017). Available at SSRN: https://ssrn.com/abstract=3066716

Stefan Thewissen

Leiden University - Department of Economics, Students ( email )

Netherlands

Olaf Van Vliet (Contact Author)

Leiden University - Leiden Law School ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Leiden University - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

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