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Job creation, job destruction, and international competition: job flows and trade: the case of NAFTA

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Author Info

  • Michael W. Klein
  • Scott Schuh
  • Robert K. Triest

Abstract

This paper is a chapter in our forthcoming monograph, Job Creation, Job Destruction, and International Competition (W.E. Upjohn Institute 2003), and expands on the ideas advanced in Klein, Schuh, and Triest (2003). The chapter is a case study of the impact of the North American Free Trade Agreement (NAFTA) on the U.S. labor market in three industries: textiles and apparel, chemicals, and automobiles. NAFTA significantly altered the trade environment for these industries and contributed to changes in the bilateral export-import structure among the United States, Canada, and Mexico. Our innovation is to examine NAFTA's effect on gross job creation and destruction, the components of change in net employment. Except for a more rapid decline in apparel employment, there is little evidence of NAFTA's having had major effects on either net employment or gross job flows in these industries.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Boston in its series Working Papers with number 02-8.

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Date of creation: 2002
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Handle: RePEc:fip:fedbwp:02-8

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Related research

Keywords: North American Free Trade Agreement ; Labor market ; Automobile industry and trade ; Chemical Industry ; Textile industry ; Clothing trade;

References

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  1. Cletus Coughlin & Howard Wall, 2003. "NAFTA and the changing pattern of state exports," Economics of Governance, Springer, vol. 82(4), pages 427-450, November.
  2. Klein, Michael W. & Schuh, Scott & Triest, Robert K., 2003. "Job creation, job destruction, and the real exchange rate," Journal of International Economics, Elsevier, vol. 59(2), pages 239-265, March.
  3. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
  4. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
  5. Mary E. Burfisher & Sherman Robinson & Karen Thierfelder, 2001. "The Impact of NAFTA on the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 125-144, Winter.
  6. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, January.
  7. Noel Gaston & Daniel Trefler, 1994. "Protection, trade, and wages: Evidence from U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(4), pages 574-593, July.
  8. Carsten Kowalczyk & Donald Davis, 1996. "Tariff Phase-Outs: Theory and Evidence from GATT and NAFTA," NBER Working Papers 5421, National Bureau of Economic Research, Inc.
  9. Gordon H. Hanson & Ann Harrison, 1999. "Trade liberalization and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
  10. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
  11. Dale Heien & Eric N. Sims, 2000. "The Impact of the Canada-United States Free Trade Agreement on U.S. Wine Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 173-182.
  12. John C. Haltiwanger & Scott Schuh, 1999. "Gross job flows between plants and industries," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 41-64.
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Cited by:
  1. Schuster, Philip, 2012. "Employment Protection, Labor Market Turnover, and the Effects of Globalization," Economics Series 288, Institute for Advanced Studies.
  2. Hoekman & Bernard & Winters, L. Alan, 2005. "Trade and employment : stylized facts and research findings," Policy Research Working Paper Series 3676, The World Bank.

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