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dc.titleLabor Market Adjustment to Import Competition: Long-Run Evidence from Establishment Data
dc.contributor.authorBlyde, Juan S.
dc.contributor.authorBusso, Matías
dc.contributor.authorRomero, Dario
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.coverageMexico
dc.coverageChina
dc.date.available2020-01-21T16:30:00
dc.date.issue2020-01-21T00:00:00
dc.description.abstractWe analyze how local labor markets in Mexico adjusted in response to an increase in Chinese import competition between 1998 and 2013. We exploit the spatial variation in import exposure arising from initial differences in industry specialization. We found that the adjustment took various forms: a decline in the number of wage employees, the substitution of some wage employees by contract workers, and the substitution of formally contracted employees by informally contracted ones. The reduction in employment levels was accompanied by an increase in the population that exited the labor force. The negative employment impact was three times more severe on production workers than on nonproduction workers, indicating that workers with lower skills were more severely affected. Overall, we find significant job losses to the order of 7.6% of the working-age population.
dc.format.extent27
dc.identifier.doihttp://dx.doi.org/10.18235/0002148
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Labor_Market_Adjustment_to_Import_Competition_Long-Run_Evidence_from_Establishment_Data_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectEmployment Rate
dc.subjectUnemployment Rate
dc.subjectManufacturing Industry
dc.subjectLabor Market
dc.subjectWage
dc.subjectInformal Labor
dc.subjectImport
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF16 - Trade and Labor Market Interactions
dc.subject.jelcodeJ23 - Labor Demand
dc.subject.keywordsImport competition; local labor markets; employment; China; Mexico
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01100
idb.operationRG-E1542
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