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

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In Economics and Econometrics

  1. David H. Autor
  2. David Dorn
  3. A. Salomons
  4. Gordon H. Hanson
  5. B. Seegmiller
  6. Caroline Chin
  7. Jessica Leight
  8. Bilge Erten

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