Collateral Damage? Labour Market Effects of Competing with China – at Home and Abroad

Sonia Cabral (), Pedro Martins, João Pereira Dos Santos () and Mariana Tavares

No 645, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: The increasing range and quality of China’s exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labour market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employeremployee data of Portugal covering the 1991-2008 period, indicate that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.

Keywords: International trade; Labour market; Matched employer-employee data; China; Import competition (search for similar items in EconPapers)
JEL-codes: F14 F16 F66 J31 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cna, nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Collateral Damage? Labour Market Effects of Competing with China—at Home and Abroad (2021)
Working Paper: Collateral Damage? Labour Market Effects of Competing with China – at Home and Abroad (2018)
Working Paper: Collateral Damage? Labour Market Effects of Competing with China - at Home and Abroad (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:645

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