Import Competition and Post-displacement Wages in Korea: Whom You Trade with Matters

Youngho Kang and Im Hyejoon ()
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Im Hyejoon: School of Economics and Finance, Yeungnam University, Daehak-ro 280, Kyungsan 712-749, South Korea

The B.E. Journal of Economic Analysis & Policy, 2016, vol. 16, issue 4, 6

Abstract: Using longitudinal survey data from Korean workers, we examine whether the effects of import competition on post-displacement wages are heterogeneous between skilled and unskilled workers for trading partners with different endowments of (un)skilled labor. Reemployment wages of displaced workers show a decrease for skilled workers but an increase for unskilled ones when imports from an advanced country rise, whereas they decrease for unskilled workers but increase for skilled ones when imports from a developing country rise. The results provide support for the Stolper–Samuelson theorem.

Keywords: import competition; post-displacement wages; skilled and unskilled labor; Stolper–Samuelson theorem; Korea (search for similar items in EconPapers)
JEL-codes: F11 F16 J30 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1515/bejeap-2016-0112

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