Made in China, Sold in Norway: Local Labor Market Effects of an Import Shock
By Ragnhild Balsvik, Sissel Jensen, Kjell G. Salvanes. Social Science Research Network, 2015
248 citations recorded by the source corpus.
We analyze whether regional labor markets are affected by exposure to import competition from China. We find negative employment effects for low-skilled workers, and observe that low-skilled workers tend to be pushed into unemployment or leave the labor force altogether. We find no evidence of wage effects. We partly expect this in a Nordic welfare state where firms are flexible at the employment margin, while centralized wage bargaining provides less flexibility at the wage margin. Our estimates suggest that import competition from China explains almost 10% of the reduction in the manufacturing employment share from 1996 to 2007 which is half of the effect found by Autor, Dorn and Hanson (2013) for the US.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/7d0b2d326b5795416f7da40048902ab2126be2a8
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- David H. Autor
- David Dorn
- A. Salomons
- Gordon H. Hanson
- B. Seegmiller
- Caroline Chin
- Jessica Leight
- Bilge Erten
Citations in the corpus
- The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade (2016, background): “Lower manufacturing employment was primarily compensated by higher unemployment in Norway and by greater employment outside of manufacturing in Spain.”
- New Frontiers: The Origins and Content of New Work, 1940–2018 (2022, background): “40Related work maps trade shocks to labor market outcomes in Brazil, Canada, India, Norway, Germany, Mexico, and other countries (Balsvik et al., 2015; Branstetter et al., 2019; Chiquiar, 2008; Dauth et al., 2014; Devlin et al., 2021; Kovak, 2013; Topalova, 2010).”
- Exporting Out of Agriculture: The Impact of WTO Accession on Structural Transformation in China (2019, background): “Additional research has analyzed the effect of Chinese import competition on manufacturing employment in Norway, Spain, Germany and Brazil (Balsvik et al., 2015; Costa et al., 2016; Dauth et al., 2014, 2017; Donoso et al., 2015). (10)Recent general equilibrium models have also aimed to explain how l”