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Local Labor Market Effects of the 2002 Bush Steel Tariffs

Author

Listed:
  • James Lake
  • Ding Liu

Abstract

President Bush imposed safeguard tariffs on steel in early 2002. Using US input-output tables and a generalized difference-in-difference methodology, we analyze the local labor market employment effects of these tariffs depending on the local labor market’s reliance on steel as an input and as part of local production. We find the tariffs did not boost local steel employment but substantially depressed local employment in steel-consuming industries for many years after Bush removed the tariffs. These large and persistent negative effects were concentrated in local labor markets that had low human capital or were strongly specialized in steel-consuming industries.

Suggested Citation

  • James Lake & Ding Liu, 2022. "Local Labor Market Effects of the 2002 Bush Steel Tariffs," CESifo Working Paper Series 9909, CESifo.
    • Handle: RePEc:ces:ceswps:_9909
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    1. Lake, James & Nie, Jun, 2023. "The 2020 US Presidential election and Trump’s wars on trade and health insurance," European Journal of Political Economy, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    Bush steel tariffs; safeguard tariffs; local labor markets; intermediate inputs; downstream; steel-consuming;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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