Discussion Paper Details

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Title: Import Competition and the Great U.S. Employment Sag of the 2000s

Author(s): Daron Acemoglu, David Autor, David Dorn, Gordon Hanson and Brendan Price

Publication Date: June 2015

Keyword(s): labor demand and trade flows

Programme Area(s): International Trade and Regional Economics and Labour Economics

Abstract: Even before the Great Recession, U.S. employment growth was unimpressive. Between 2000 and 2007, the economy gave back the considerable employment gains achieved during the 1990s, with a historic contraction in manufacturing employment being a prime contributor to the slump. We estimate that import competition from China, which surged after 2000, was a major force behind both recent reductions in U.S. manufacturing employment and-through input-output linkages and other general equilibrium channels-weak overall U.S. job growth. Our central estimates suggest job losses from rising Chinese import competition over 1999 through 2011 in the range of 2.0 to 2.4 million.

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Bibliographic Reference

Acemoglu, D, Autor, D, Dorn, D, Hanson, G and Price, B. 2015. 'Import Competition and the Great U.S. Employment Sag of the 2000s'. London, Centre for Economic Policy Research.