Employment Dynamics and Import Competition

Hale Utar

No 298, 2006 Meeting Papers from Society for Economic Dynamics

Abstract: This paper develops a new way to quantify the effects of import competition on intra-industry patterns of job creation and destruction. It is based on an industrial evolution model with imperfectly competitive product markets, heterogeneous firms, and endogenous entry and exit. First, Colombian panel data on metal product producers are used to identify the model's parameters, including the sunk start-up costs faced by new firms, the stochastic process that governs firms' idiosyncratic productivity shocks, and the hiring and firing costs associated with changing employment levels. Then several counterfactual trade policy experiments are conducted. In addition to quantifying the effects of openness on job turnover patterns, the model delivers predictions on the associated changes in labor productivity, the nature of the transition process when openness changes, and the role of hiring and firing costs in shaping firms' responses

Keywords: import; competition; industry; dynamics; monopolistic; competition (search for similar items in EconPapers)
JEL-codes: C10 F16 L13 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed006:298

Access Statistics for this paper

More papers in 2006 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().