Economics at your fingertips  

The hidden cost of trade liberalization: Input tariff shocks and worker health in China

Haichao Fan, Faqin Lin () and Shu Lin ()

Journal of International Economics, 2020, vol. 126, issue C

Abstract: This study examines the health effect of input tariff reductions on Chinese manufacturing workers and its heterogeneity across skill levels. We first provide a simple model to demonstrate the mechanisms. We then put the predictions of the model into a test using the China Health and Nutrition Survey data. Exploiting prefecture variations in input tariff shocks, we find that input tariff reductions following China's WTO accession adversely affect worker health through increased working hours. Moreover, input tariff reductions widen both the income and the health gaps between skilled and unskilled workers. Further welfare analysis indicates that ignoring health outcomes would substantially underestimate the welfare disparity between skilled and unskilled workers.

Keywords: Input tariff; Trade liberalization; Health; Welfare disparity; China (search for similar items in EconPapers)
JEL-codes: F1 I1 J2 J3 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/j.jinteco.2020.103349

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-10-11
Handle: RePEc:eee:inecon:v:126:y:2020:i:c:s0022199620300659