The Heterogeneous Effects of Trade across Occupations: A Test of the Stolper-Samuelson Theorem

Martí Mestieri, Sergi Basco, Gabriel Smagghue () and Maxime Liegey

No 15186, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper develops and implements a novel test of the Stolper-Samuelson theorem. We use nationally-representative matched employer-employee panel data from 1997 through 2015 to study the effect of the rise in China’s exports on French worker earnings. Our version of the Stolper-Samuelson theorem states that there is a negative correlation between occupation exposure to Chinese competition and change in worker earnings. First, we document substantial heterogeneity in trade adjustment across occupations. Then, consistent with the Stolper-Samuelson prediction, we show that workers initially employed in occupations more intensively used in hard-hit industries experience larger declines in earnings. We also show that workers tend to move out of hard-hit industries, but they tend to remain in their initial occupation

Keywords: Stolper-samuelson; Inequality (search for similar items in EconPapers)
JEL-codes: F11 F14 F16 (search for similar items in EconPapers)
Date: 2020-08
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Working Paper: The Heterogeneous Effects of Trade across Occupations: A Test of the Stolper-Samuelson Theorem (2020)
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