Rising Import Competition in Canada and its Employment Effect by Gender: Evidence from the 'China Shock'

Myeongwan Kim

No 2018-03, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: It is well known that there has been a secular decline in the manufacturing share of total employment in Canada, with the decline accelerating after 2000. Among the factors that contributed to that trend, this report focuses on rising Chinese import competition in Canada, which also accelerated after 2000. A trade-induced job loss in manufacturing is estimated by gender. We estimate that a trade-induced job loss amounted to 56.8 thousand for males and 36.1 thousand for females over the 2001-2011 period. However, females had a larger loss in relative terms since they experienced a much smaller decline in their total manufacturing employment over this period. We also find that the labour reallocation in response to a trade shock is important in offsetting the negative employment effect. However, the reallocation was less successful for females.

Keywords: import competition; China shock; manufacturing employment; gender; trade-induced job loss; labour reallocation; Canada (search for similar items in EconPapers)
Date: 2018-08
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