TY  - GEN
AU  - Blyde, Juan S.
AU  - Busso, Matías
AU  - Park, Kyunglin
AU  - Romero, Dario
TI  - Short- and Long-Run Labor Market Adjustment to Import Competition
PY  - 2023
Y1  - 2023/01/20
DO  - 10.18235/0004703
AB  - By exploiting spatial variation in import exposure arising from initial differences in industry specialization, we analyze how local labor markets in Mexico adjusted to increased Chinese-import competition over different time horizons. The initial adjustment to the shock took various forms: a decline in the number of wage employees, a substitution of wage employees with piece-rate or outsourced workers, and a substitution of formal employees with informal employees. The negative effects on employment were mainly associated with job destruction from exiting firms, particularly those that were small and medium-sized. During periods in which employment fell, the population that actively participated in the labor force fell. The negative short- and medium-run effects mostly disappeared after 20 years.
UR  - https://doi.org/10.18235/0004703
ER  -