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dc.titleShort- and Long-Run Labor Market Adjustment to Import Competition
dc.contributor.authorBlyde, Juan S.
dc.contributor.authorBusso, Matías
dc.contributor.authorPark, Kyunglin
dc.contributor.authorRomero, Dario
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageMexico
dc.coverageMexico
dc.date.available2023-01-20T11:12:45
dc.date.issue2023-01-19T00:01:00
dc.description.abstractBy 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.
dc.format.extent29
dc.identifier.doihttp://dx.doi.org/10.18235/0004703
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Short--and-Long-Run-Labor-Market-Adjustment-to-Import-Competition.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectLabor Force
dc.subjectSmall Business
dc.subjectLabor
dc.subjectWage
dc.subjectCompetitiveness
dc.subjectManufacturing Industry
dc.subjectIndustry
dc.subjectLabor Market
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;Mexico
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01418
idb.operationRG-E1730
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