Job creation and job destruction
The effect of trade shocks on U.S. manufacturing employment
Bibliographic Data
| ID | 21543548 |
|---|---|
| Authors | Yang Liang (0000-0002-4226-9580, Department of Economics San Diego State University San Diego CA USA, corresponding author) |
| Year | 2021 |
| Volume | 44 |
| Issue | 10 |
| Pages | 2909-2949 |
| Publication date | 2021-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.13111 |
| OpenAlex | W3127073989 |
| Language | EN |
| Citations received | 1 |
| References cited | 33 |
This paper studies the effect of export expansion on the US labour market over the last two decades. Exploiting foreign emerging markets’ unilateral liberalisation, this paper provides new empirical evidence for the importance of export expansion to the US labour market at the industry level. Using a novel instrumental variable strategy, the result confirms that US exports played a critical role in supporting manufacturing employment. Reduced‐form estimates imply that US exports to different markets created more than 1.6 million manufacturing jobs between 1991 and 2007, which is comparable to the estimated job losses attributed to the import competition from China. Meanwhile, there is substantial heterogeneity in this positive employment effect across export destinations and industries. Industries not only respond differently to various export shocks, but could also experience differential employment growth facing the same export shock. I find that the job creation effect is larger for industries with a higher initial share of workers who are older, less‐educated or non‐white, and performing routine‐based tasks. In addition, the effect is more pronounced for industries that had higher labour market concentration
Business · China · Destinations · Economics · Instrumental variable · Job creation · Job loss · Labour economics · Liberalization · Macroeconomics · Manufacturing · Market economy · Unemployment · Employment and Welfare Studies · Firm Innovation and Growth · Global trade and economics
Equilibrium unemployment theory
The Socialist System
Economic Reform and the Process of Global Integration
Trade and Labor Market Dynamics
Trade Adjustment
Trade Liberalization, Exports, and Technology Upgrading
The Rise of the East and the Far East: German Labor Markets and Trade Integration
The Surprisingly Swift Decline of US Manufacturing Employment
Commuting, Migration, and Local Employment Elasticities
Survival of the best fit
Trade Liberalization and Growth
Bartik Instruments
Errors in variables in panel data
Trade Liberalization and Regional Dynamics
Import Competition and the Great US Employment Sag of the 2000s
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
The China Syndrome
Looking for Local Labor Market Effects of Nafta
The Impact of Exports on Innovation
Trade liberalization and unemployment
Robots and Jobs
Untangling Trade and Technology
| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |