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The Impact of Import Competition on Employment and Wages in Swiss Manufacturing

Javier Suarez

Swiss Journal of Economics and Statistics (SJES), 1999, vol. 135, issue IV, 607-618

Abstract: This paper explores the impact of import competition on wage and employment at the industry level in Switzerland. We estimated reduced-form wage and employment equations for a panel of seven Swiss manufacturing sectors. Our analysis relies on a basic partial equilibrium relationship that relates changes in import price to domestic factor price and factor demand changes. Results are consistent with those found for other countries. A majority of the coefficients are significantly positive, reflecting a negative impact of import competition on both employment and wages, but our main result is that all the elasticities have a relatively small magnitude. As in several other studies, our results suggest that import price variations have had very little incidence on domestic labour market.

Date: 1999
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Handle: RePEc:ses:arsjes:1999-iv-5