Worker-Level Consequences of Import Shocks

Katariina Nilsson Hakkala and Kristiina Huttunen

No 10033, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 to other EU countries. 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 (search for similar items in EconPapers)
JEL-codes: F16 J23 J31 J63 L23 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2016-07
New Economics Papers: this item is included in nep-ger, 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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Working Paper: Worker-level consequences of import shocks (2016)
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