Trade Costs and Job Flows: Evidence from Establishment-Level Data

José Groizard, Priya Ranjan () and José Antonio Rodríguez-López ()
Additional contact information
Priya Ranjan: University of California Irvine, http://www.economics.uci.edu/~pranjan/
José Antonio Rodríguez-López: University of California Irvine, http://www.socsci.uci.edu/~jantonio/
Authors registered in the RePEc Author Service: Priyaranjan Jha

No 48, DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada

Abstract: We present evidence of the impact of input and output trade liberalization on establishment-level job flows. Using a longitudinal database containing the universe of manufacturing establishments in California from 1992 to 2004, we find that a decline in input or output trade costs causes job destruction in the least productive establishments, job creation in the most productive establishments, and an increase in the death likelihood of the least productive establishments. The evidence is consistent with predictions of models of trade with heterogeneous firms. We also show that input trade liberalization has larger effects on establishment-level job flows than output trade liberalization.

Keywords: heterogeneous firms; job flows; trade costs. (search for similar items in EconPapers)
JEL-codes: F12 F14 F16 (search for similar items in EconPapers)
Date: 2012, Revised 2014-03
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: TRADE COSTS AND JOB FLOWS: EVIDENCE FROM ESTABLISHMENT‐LEVEL DATA (2015)
Working Paper: Trade Costs and Job Flows: Evidence from Establishment-Level Data (2014)
Working Paper: Trade Costs and Job Flows: Evidence from Establishment-Level Data (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ubi:deawps:48

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