Competing with the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries

Stefan Thewissen and Olaf Vliet

INET Oxford Working Papers from Institute for New Economic Thinking at the Oxford Martin School, University of Oxford

Abstract: China's rapid rise on the global economic stage has substantial and unequal employment and wage effects in advanced industrialised democracies given China's large volume of low-wage labour. Thus far, these effects have not been analysed in the comparative political economy literature. Building on pooled time-series data, we analyse the effects of Chinese trade competition across 17 sectors in 18 countries. We devote attention to a new channel, increased competition from China in foreign export markets. Our empirical findings reveal overall employment declines in sectors more exposed to Chinese imports. Furthermore, effects on wages and employment are not equally shared across skill levels. For the high-skilled, Chinese competition yields neutral or positive effects whilst the low-skilled bear the brunt.

Keywords: globalisation; export competition; wage inequality; labour markets; sectors (search for similar items in EconPapers)
Pages: 34 pages
Date: 2015-12
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Journal Article: Competing With the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:amz:wpaper:2015-08

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