Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys

By A. Ebenstein, Ann E. Harrison, Margaret S. McMillan, Shannon Phillips. Review of Economics and Statistics, 2011

469 citations recorded by the source corpus.

Abstract We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure to globalization is associated with significant wage effects, while industry exposure has no significant impact. We present evidence that globalization has put downward pressure on worker wages through the reallocation of workers away from higher-wage manufacturing jobs into other sectors and other occupations. Using a panel of workers, we find that occupation switching due to trade led to real wage losses of 12 to 17 percentage points.

Subfields: Economics and Econometrics, General Health Professions

View Paper: https://www.semanticscholar.org/paper/543e47d69abd54cc74a55b1707aef10eb7f7ad61

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Citations in the corpus

Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure (2020, methodology): “Counties, in turn, are the building blocks of CZs, which are clusters of adjoining locations that have the commuting structure of a local labor market (Tolbert and Sizer, 1996; Dorn, 2009).”
The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade (2016, unknown): “…trade shocks at the firm level, see Amiti & Davis (2012) and Hummels et al. (2014); on adjustment at the industry level, see Bernard et al. (2006), Ebenstein et al. (2014), and Bloom et al. (2016); and on adjustment to trade at the regional level, see Borjas & Ramey (1995), Topalova (2010), Kovak…”
The Surprisingly Swift Decline of U.S. Manufacturing Employment (2013, unknown): “More recent papers investigate the e ect of China on manufacturing employment in a range of countries, including Belgium (Mion and Zhu 2013), the EU (Bloom et al. 2012), Mexico (Utar and Torres Ruiz 2013) and the United States (Ebenstein et al. 2011, Autor et al. 2012, and Autor et al. 2013).”
The China Syndrome: Local Labor Market Effects of Import Competition in the United States (2013, methodology): “Ebenstein et al. (2010), who like Liu and Trefler (2008) use data from the CPS, find larger effects of trade on wages, with wages growing more slowly in occupations more exposed to import penetration and to US multinationals moving production offshore.8 Our approach is complementary to this strand…”
New Perspectives on the Decline of US Manufacturing Employment (2018, background): “That is, the characteristics that make occupations susceptible to o shoring, such as routineness, also render them susceptible to automation (Ebenstein et al. (2014); Oldenski (2014)). adoption during this period was hastened by trade liberalization with China.”
Occupation and the Political Economy of Trade: Job Routineness, Offshorability, and Protectionist Sentiment (2017, methodology): “Acemoglu and Autor, 2011; Autor, Levy and Murnane, 2003; Crino, 2010; Ebenstein et al., 2014). In their seminal work on this topic, Autor, Levy and Murnane (2003), develop a two dimensional classification of tasks: (1) cognitive or manual; and (2) routine or non-routine (abstract).”
The Rise of the East and the Far East: German Labor Markets and Trade Integration (2014, methodology): “Afterwards, we adopt a disaggregate approach and analyze how trade exposure affects individual employment biographies across heterogeneous worker-establishment pairs in different industries.”
Globalization and U.S. Wages: Modifying Classic Theory to Explain Recent Facts (2012, background): “Ebenstein, Harrison, McMillan, and Phillips (2009) find no effect of import competition at the level of industry wages, but they find that workers displaced from manufacturing earn 3-9 percent less if reemployed in other sectors.”
Import Competition and the Great US Employment Sag of the 2000s (2015, unknown): “More broadly, Ebenstein et al. (2014) examine the impact of trade in the form of offshoring on the wages of U.S. workers, finding that workers switching out of manufacturing experience relatively large wage declines.”
Offshoring and Labor Markets (2018, background): “Ebenstein et al. (2014) and Ottaviano, Peri, and Wright (2013) measure offshoring using growth in employment for affiliates of US multinational firms.”
Trade Adjustment: Worker Level Evidence (2014, unknown): “Artuç, Chaudhuri, and McLaren (2010) and Ebenstein et al. (2011) on trade and”