Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Made in China, sold in Norway: Local labor market effects of an import shock.
(), Sissel Jensen
() and Kjell G. Salvanes
Abstract: We analyze whether regional labor markets are affected by
exposure to import competition from China. We find negative employment
effects for low-skilled workers, and observe that low-skilled workers tend
to be pushed into unemployment or leave the labor force altogether. We find
no evidence of wage effects. We partly expect this in a Nordic welfare
state where firms are flexible at the employment margin, while centralized
wage bargaining provides less flexibility at the wage margin. Our estimates
suggest that import competition from China explains almost 10% of the
reduction in the manufacturing employment share from 1996 to 2007 which is
half of the effect found by Autor, Dorn and Hanson (2013) for the US.
Keywords: Import Competition; Local Labor Markets; Norway. ; (follow links to similar papers)
JEL-Codes: F16; H53; J23; J31; (follow links to similar papers)
44 pages, June 30, 2014
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