Made in China, Sold in Norway: Local Labor Market Effects of an Import Shock
Ragnhild Balsvik (),
Sissel Jensen and
Kjell G Salvanes
No 8324, IZA Discussion Papers from Institute of Labor Economics (IZA)
We analyze whether regional labor markets are affected by expo- sure to import competition from China. We find negative employment effects for low-skilled workers, and observe that low-skilled workers tend to be pushed into unemployment or leave the labor force altogether. We find no evidence of wage effects. We partly expect this in a Nordic welfare state where firms are flexible at the employment margin, while centralized wage bargaining provides less flexibility at the wage margin. Our estimates suggest that import competition from China explains almost 10% of the reduction in the manufacturing employment share from 1996 to 2007 which is half of the effect found by Autor, Dorn and Hanson (2013) for the US.
Keywords: import competition; local labor markets; Norway (search for similar items in EconPapers)
JEL-codes: F16 H53 J23 J31 (search for similar items in EconPapers)
Pages: 46 pages
New Economics Papers: this item is included in nep-cna, nep-lab and nep-ure
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Journal Article: Made in China, sold in Norway: Local labor market effects of an import shock (2015)
Working Paper: Made in China, sold in Norway: Local labor market effects of an import shock (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp8324
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