This paper finds a link between the sharp drop in U.S. manufacturing employment beginning in 2001 and a change in U.S. trade policy that eliminated potential tariff increases on Chinese imports. Industries where the threat of tariff hikes declines the most experience more severe employment losses along with larger increases in the value of imports from China and the number of firms engaged in China-U.S. trade. These results are robust to other potential explanations of the employment loss, and we show that the U.S. employment trends differ from those in the EU, where there was no change in policy.
The Surprisingly Swift Decline of U.S. Manufacturing Employment
Justin R. Pierce,Peter K. Schott
Published 2013 in Social Science Research Network
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- Publication year
2013
- Venue
Social Science Research Network
- Publication date
2013-11-01
- Fields of study
Economics
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