Racial and Ethnic Inequality and the China Shock

61 Pages Posted: 14 Nov 2022 Last revised: 26 Sep 2024

See all articles by Lisa Kahn

Lisa Kahn

University of Rochester

Lindsay Oldenski

Georgetown University

Geunyong Park

University of Rochester

Date Written: November 2022

Abstract

Minority workers generally have worse economic outcomes than whites, and are disproportionately impacted by many negative shocks. However, we show that Black-white employment gaps narrowed as a result of China's WTO accession because Black workers transitioned to nonmanufacturing employment at higher rates. They also lived in less exposed areas of the country and were less reliant on manufacturing employment at baseline. Hispanic populations in contrast were overrepresented in exposed manufacturing industries and experienced larger overall employment losses. The China shock thus widened Hispanic-white gaps, though this effect was short lived. The lasting negative effects were driven primarily by white workers.

Suggested Citation

Kahn, Lisa and Oldenski, Lindsay and Park, Geunyong, Racial and Ethnic Inequality and the China Shock (November 2022). NBER Working Paper No. w30646, Available at SSRN: https://ssrn.com/abstract=4276107

Lisa Kahn (Contact Author)

University of Rochester ( email )

300 Crittenden Blvd.
Rochester, NY 14627
United States

Lindsay Oldenski

Georgetown University ( email )

Washington, DC 20057
United States

Geunyong Park

University of Rochester ( email )

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