Made in China, sold in Norway: Local labor market effects of an import shock

Ragnhild Balsvik, Sissel Jensen and Kjell G Salvanes

No 25/2014, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: We analyze whether regional labor markets are affected by exposure to import competition from China. We find negative employment effects for low-skilled workers, and observe that low-skilled workers tend to be pushed into unemployment or leave the labor force altogether. We find no evidence of wage effects. We partly expect this in a Nordic welfare state where firms are flexible at the employment margin, while centralized wage bargaining provides less flexibility at the wage margin. Our estimates suggest that import competition from China explains almost 10% of the reduction in the manufacturing employment share from 1996 to 2007 which is half of the effect found by Autor, Dorn and Hanson (2013) for the US.

Keywords: Import Competition; Local Labor Markets; Norway. (search for similar items in EconPapers)
JEL-codes: F16 H53 J23 J31 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2014-06-30
New Economics Papers: this item is included in nep-cna, nep-eur, nep-lab, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Related works:
Journal Article: Made in China, sold in Norway: Local labor market effects of an import shock (2015)
Working Paper: Made in China, Sold in Norway: Local Labor Market Effects of an Import Shock (2014)
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