Collateral Damage? Labour Market Effects of Competing with China—at Home and Abroad

Sonia Cabral (), Pedro Martins, João Pereira Dos Santos () and Mariana Tavares

Economica, 2021, vol. 88, issue 350, 570-600

Abstract: The increasing range and quality of China's exports is a major development internationally with potentially far‐reaching effects. In this paper, on top of the direct labour market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employer–employee data of Portugal covering the period 1991–2008, indicate that workers’ earnings and employment are significantly negatively affected by China's competition, but only through the indirect ‘market‐stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non‐significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1111/ecca.12355

Related works:
Working Paper: Collateral Damage? Labour Market Effects of Competing with China – at Home and Abroad (2020)
Working Paper: Collateral Damage? Labour Market Effects of Competing with China – at Home and Abroad (2018)
Working Paper: Collateral Damage? Labour Market Effects of Competing with China - at Home and Abroad (2018)
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:bla:econom:v:88:y:2021:i:350:p:570-600

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().