Worker-level consequences of import shocks

Katariina Nilsson Hakkala and Kristiina Huttunen

No 74, Working Papers from VATT Institute for Economic Research

Abstract: We analyse the effects of imports on employment and earnings by distinguishing between import competition in final products and firms' use of imports in production (offshoring). We use Finnish worker-firm data merged with product -level trade data. We focus on Chinese imports and instrument them by changes in China's share of world exports. Both types of importing increase the job loss risk for all workers and, in particular, for workers in production occupations. An increase in import competition has larger negative effects than an increase in offshoring. Production workers suffer the largest earnings losses, while for high -skilled workers the wage-effect is positive.

Keywords: Offshoring, Import Competition, Employment, Earnings, Labour market, Työmarkkinat, F160 - Trade and Labor Market Interactions, J230 - Employment Determination; Job Creation; Demand for Labor; Self-Employment, J310 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. (industry, schooling, experience, tenure, cohort, etc.), J630 - Labor Turnover; Vacancies; Layoffs (includes separations, hires, redundancy, job tenure, displaced workers), L240 - Contracting Out; Joint Ventures, (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-bec, nep-cna, nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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https://www.doria.fi/handle/10024/148732

Related works:
Working Paper: Worker-Level Consequences of Import Shocks (2016)
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