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Title: Services Input Intensity and US Manufacturing Employment Responses to the China Shock

Author(s): Omar Bamieh, Matteo Fiorini, Bernard Hoekman and Adam Jakubik

Publication Date: July 2017

Keyword(s): China shock, import competition, Manufacturing employment, services input use and servicification

Programme Area(s): International Trade and Regional Economics

Abstract: We present evidence that the negative effect of the China shock on US manufacturing employment is lower for industries that use services inputs more intensively. Different potential mechanisms for this finding are analyzed. This reveals significant heterogeneity across different types of services and their potential role in affecting labor demand and supply responses to greater import competition.

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Bibliographic Reference

Bamieh, O, Fiorini, M, Hoekman, B and Jakubik, A. 2017. 'Services Input Intensity and US Manufacturing Employment Responses to the China Shock '. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12173