Job Creation, Job Destruction, and International Competition: Job Flows and Trade - the Case of Nafta

Posted: 3 Jun 2004

See all articles by Michael W. Klein

Michael W. Klein

Tufts University - The Fletcher School of Law and Diplomacy; National Bureau of Economic Research (NBER)

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Robert K. Triest

Federal Reserve Bank of Boston - Research Department; Boston College

Date Written: December 2002

Abstract

This paper is a chapter in our forthcoming monograph, Job Creation, Job Destruction, and International Competition (W.E. Upjohn Institute 2003), and expands on the ideas advanced in Klein, Schuh, and Triest (2003). The chapter is a case study of the impact of the North American Free Trade Agreement (NAFTA) on the U.S. labor market in three industries: textiles and apparel, chemicals, and automobiles. NAFTA significantly altered the trade environment for these industries and contributed to changes in the bilateral export-import structure among the United States, Canada, and Mexico. Our innovation is to examine NAFTA's effect on gross job creation and destruction, the components of change in net employment. Except for a more rapid decline in apparel employment, there is little evidence of NAFTA's having had major effects on either net employment or gross job flows in these industries.

Keywords: Gross Job Flows, Openness, International Trade, NAFTA, Real Exchange Rates

JEL Classification: F4, J6

Suggested Citation

Klein, Michael W. and Schuh, Scott and Triest, Robert, Job Creation, Job Destruction, and International Competition: Job Flows and Trade - the Case of Nafta (December 2002). Available at SSRN: https://ssrn.com/abstract=458462

Michael W. Klein

Tufts University - The Fletcher School of Law and Diplomacy ( email )

Medford, MA 02155
United States
617-627-2718 (Phone)
617-627-3712 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Scott Schuh (Contact Author)

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Ave.
Boston, MA 02210
United States
617-973-3941 (Phone)
617-619-7541 (Fax)

Robert Triest

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Avenue
Boston, MA 02210
United States
617-973-3431 (Phone)
617-973-3957 (Fax)

Boston College ( email )

Chestnut Hill, MA 02167
United States

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