Effects of Chinese Import Competition on U.S. Self-employment

Bulent Unel ()

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: This paper investigates effects of increased Chinese import competition (following a change in U.S. trade policy that eliminated uncertainties surrounding tariff rates on Chinese imports) on self-employment across U.S. local markets. Areas most exposed to the trade policy change experienced a more significant decline in self-employment, which, in turn, explains about an 11.5% reduction in total employment. Further, effects almost entirely come from non-manufacturing sectors and are larger on in- corporated self-employed business owners. Finally, the impact varies considerably across different groups characterized by gender, age, and education, and the results are robust to the choice of controls.

Date: 2021-02
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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2021-01

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