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Export Composition and Manufacturing Employment in the US during the Economic Downturn of 1991-92

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  • Mark S. Leclair

Abstract

This paper examines the effect that export composition had upon manufacturing employment in the US during the 1991 recession. Although it takes, on average, approximately $66 000 in exports to create one job, the exact gains in terms of total employment depend upon the labour-intensity of the products being exported. Foreign sales by the chemical and textile industries result in a far greater increase in employment than exports by the petroleum refining or steel industries. This analysis estimates the employment effects of manufacturing exports over the 1989-95 period, utilizing an input-output model to capture both direct and indirect effects. The results demonstrate that export composition has, at times, both strengthened and reduced demand for labour. Consequently, if job-creation is a national goal, it may be in the interests of the US to promote exports from sectors that are labour-using.

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  • Mark S. Leclair, 2002. "Export Composition and Manufacturing Employment in the US during the Economic Downturn of 1991-92," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 147-156, June.
    • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:147-156
    DOI: 10.1080/09535310220140942
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    1. Deardorff, A.V., 1997. "Factor Prices and the Factor Content of Trade Revisited: What's the Use?," Working Papers 409, Research Seminar in International Economics, University of Michigan.
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    3. Hungerford, Thomas L, 1995. "International Trade, Comparative Advantage and the Incidence of Layoff Unemployment Spells," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 511-521, August.
    4. Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
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    Cited by:

    1. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, September.
    2. Ha Thi Thanh Doan & Trinh Quang Long, 2019. "Technical Change, Exports, and Employment Growth in China: A Structural Decomposition Analysis," Asian Economic Papers, MIT Press, vol. 18(2), pages 28-46, Summer.

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