The Employment Consequences of Anti-Dumping Tariffs: Lessons from Brazil

128 Pages Posted: 13 Oct 2022 Last revised: 2 Apr 2025

See all articles by Gustavo de Souza

Gustavo de Souza

Federal Reserve Bank of Chicago

Haishi Li

The University of Hong Kong

Multiple version iconThere are 3 versions of this paper

Date Written: April 01, 2024

Abstract

How do import tariffs affect employment? We develop an empirical strategy to identify the effects of tariffs using difference-in-differences, comparing anti-dumping (AD) investigations resulting in dumping tariffs to those not resulting in dumping tariffs. We find that an AD tariff decreases imports and increases employment in the protected sector. Moreover, downstream firms decrease employment, while upstream ones are unaffected because the protected sector sources inputs abroad. Using a model to quantify the aggregate effects, we find that the Brazilian AD policy increased employment by 0.06% at a welfare loss of 2.4%.

Keywords: employment, tariffs, anti-dumping, international trade JEL Codes: F13, F16

JEL Classification: F13, F16

Suggested Citation

de Souza, Gustavo and Li, Haishi, The Employment Consequences of Anti-Dumping Tariffs: Lessons from Brazil (April 01, 2024). FRB of Chicago Working Paper No. 46, 2022, HKU Jockey Club Enterprise Sustainability Global Research Institute - Archive, Available at SSRN: https://ssrn.com/abstract=4246013 or http://dx.doi.org/10.2139/ssrn.4246013

Gustavo De Souza (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

Haishi Li

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

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