The China Shock, Employment Protection, and European Jobs

Hedieh Aghelmaleki, Ronald Bachmann and Joel Stiebale

ILR Review, 2022, vol. 75, issue 5, 1269-1293

Abstract: The authors investigate the effects of Chinese import competition on transitions into and out of employment using comparable worker-level data for 14 European countries. Results indicate that, on average, Chinese imports are associated with an increased probability that employed workers become unemployed and with a reduction in worker flows from unemployment to employment. In countries with high levels of employment protection, incumbent workers are shielded against the risk of job loss due to Chinese competition, but unemployed workers’ prospects seem to be particularly negatively affected in these countries. The authors also provide evidence that the effects of increased Chinese imports differ by worker groups and the tasks performed on the job.

Keywords: trade adjustments; China; import competition; worker flows; employment protection; employment transitions; labor-market transitions (search for similar items in EconPapers)
Date: 2022
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Working Paper: The China shock, employment protection, and European jobs (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:75:y:2022:i:5:p:1269-1293

DOI: 10.1177/00197939211052283

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