To Find Relative Earnings Gains After the China Shock, Look Outside Manufacturing and Upstream

Justin Pierce, Peter Schott and Cristina Tello-Trillo

No 32438, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine US workers' employment and earnings before and after trade liberalization with China. Among workers initially employed in manufacturing, we find substantial and persistent declines in both outcomes, with indirect exposure via input-output linkages exacerbating the negative effects of direct exposure. For workers initially employed outside manufacturing, however, we find that the positive impact of greater upstream exposure via inputs more than offsets the adverse impacts of own- and downstream exposure, inducing relative earnings gains. We also find that spatial exposure is more influential than industry exposure.

JEL-codes: F0 F13 J30 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-cna, nep-ifn, nep-int, nep-lma and nep-ure
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