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Manufacturing Wages and Imports: Evidence from the NLSY

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  • VASILIOS D. KOSTEAS

Abstract

This paper analyses the effect of imports on US manufacturing wages using the NLSY79 data‐set, estimating differential impacts on blue‐ and white‐collar wages. I find that rising imports put downward pressure on wages between 1979 and 1988. This correlation holds for both white‐ and blue‐collar workers, with a somewhat stronger impact on the latter group. Evidence suggests that imports from low‐wage countries are responsible for the negative relationship between imports and wages, but only for blue‐collar wages. A one‐percentage‐point increase in the low‐wage import share is associated with a 2.8% decline in blue‐collar wages.

Suggested Citation

  • Vasilios D. Kosteas, 2008. "Manufacturing Wages and Imports: Evidence from the NLSY," Economica, London School of Economics and Political Science, vol. 75(298), pages 259-279, May.
    • Handle: RePEc:bla:econom:v:75:y:2008:i:298:p:259-279
    DOI: 10.1111/j.1468-0335.2007.00591.x
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    References listed on IDEAS

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    1. Alan B. Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," Working Papers 754, Princeton University, Department of Economics, Industrial Relations Section..
    2. Robert C. Feenstra, 1996. "U.S. Imports, 1972-1994: Data and Concordances," NBER Working Papers 5515, National Bureau of Economic Research, Inc.
    3. R. E. Baldwin & G. G. Cain, "undated". "Shifts in U.S. Relative Wages: The Role of Trade, Technology, and Factor Endowments," Institute for Research on Poverty Discussion Papers 1132-97, University of Wisconsin Institute for Research on Poverty.
    4. repec:fth:prinin:375 is not listed on IDEAS
    5. Jonathan E. Haskel & Matthew J. Slaughter, 1998. "Does the Sector Bias of Skill-Biased Technical Change Explain Changing Wage Inequality?," NBER Working Papers 6565, National Bureau of Economic Research, Inc.
    6. Alan Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," Working Papers 754, Princeton University, Department of Economics, Industrial Relations Section..
    7. Robert C. Feenstra & John Romalis & Peter K. Schott, 2002. "U.S. Imports, Exports, and Tariff Data, 1989-2001," NBER Working Papers 9387, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Tempesti, Tommaso, 2015. "Fringe Benefits and Import Competition," MPRA Paper 69842, University Library of Munich, Germany.
    2. Vasilios D. Kosteas, 2017. "Workers’ Participation in Training and Import Competition: Evidence from the USA," The World Economy, Wiley Blackwell, vol. 40(6), pages 1089-1104, June.
    3. Tommaso Tempesti, 2020. "Fringe Benefits and Chinese Import Competition," Southern Economic Journal, John Wiley & Sons, vol. 86(4), pages 1307-1337, April.
    4. Tommaso Tempesti, 2016. "Offshoring and the Skill-premium: Evidence from Individual Workers’ Data," The World Economy, Wiley Blackwell, vol. 39(10), pages 1628-1652, October.

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