The Role of Self-Employment in Mitigating Trade Shocks of Chinese Imports on U.S. County Labor Markets

Jiaochen Liang and Stephan Goetz

No 169709, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: This paper embeds an analysis of self-employment into the framework of international trade and local economies, seeking to explain how entrepreneurship can shape local labor market response to trade shocks. We investigate the cross-effect of self-employment and change in Chinese imports on US county labor markets during 2000-2007. Our empirical results suggest that counties with higher self-employment experience smaller job losses and wage cuts in response to Chinese imports. That suggests self-employment or entrepreneurship activities in local economies mitigate adverse impacts of trade penetration.

Keywords: Community/Rural/Urban Development; International Relations/Trade (search for similar items in EconPapers)
Pages: 25
Date: 2014
New Economics Papers: this item is included in nep-ent
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:169709

DOI: 10.22004/ag.econ.169709

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