U.S. Job Flows and the China Shock

Brian Asquith, Sanjana Goswami, David Neumark and Antonio Rodriguez-Lopez

No 24080, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: International trade exposure affects job creation and destruction along the intensive margin (job flows due to expansions and contractions of firms' employment) as well as along the extensive margin (job flows due to births and deaths of firms). This paper uses 1992-2011 employment data from the {universe} of U.S. establishments to construct job flows at both the industry and commuting-zone levels, and then estimates the impact of the `China shock' on each job-flow type. The China shock is accounted for by either the increase in Chinese import penetration in the U.S., or by the U.S. policy change that granted Permanent Normal Trade Relations (PNTR) status to China. We find that the China shock affects U.S. employment mainly through deaths of establishments. At the commuting-zone level, we find evidence of large job reallocation from the Chinese-competition exposed sector to the nonexposed sector, and establish that the gross employment effects of the China shock are fundamentally different from those of a more general adverse shock affecting the U.S. demand for domestic labor.

JEL-codes: F14 F16 F6 J2 J65 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-cna, nep-int, nep-lma and nep-tre
Note: ITI LS PR
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Citations: View citations in EconPapers (6)

Published as Brain Asquith & Sanjana Goswami & David Neumark & Antonio Rodriguez-Lopez, 2019. "U.S. job flows and the China shock," Journal of International Economics, .

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Journal Article: U.S. job flows and the China shock (2019)
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