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The Health Toll of Import Competition

Author

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  • Adda, Jérôme

    (Bocconi University)

  • Fawaz, Yarine

    (CEMFI, Madrid)

Abstract

This paper assesses the effect of import competition on the labor market and health outcomes of US workers. We first show that import shocks affect employment and income, but only in areas where jobs are more intense in routine tasks. Exploiting over 40 million individual observations on health and mortality, we find that import had a detrimental effect on physical and mental health that is concentrated in those areas and exhibits strong persistence. It decreased health care utilisation and increased hospitalisation for a large set of conditions, more difficult to treat. The mortality hazard of workers in manufacturing increased by up to 6 percent per billion dollar import increase.

Suggested Citation

  • Adda, Jérôme & Fawaz, Yarine, 2020. "The Health Toll of Import Competition," IZA Discussion Papers 12924, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12924
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    3. Diaz Gutierrez, Julian, 2023. "Trade Effects on Substance Abuse: Evidence from Colombia's Liberalization," 2023 Annual Meeting, July 23-25, Washington D.C. 335460, Agricultural and Applied Economics Association.
    4. Hasan, Iftekhar & Krause, Thomas & Manfredonia, Stefano & Noth, Felix, 2022. "Banking market deregulation and mortality inequality," Bank of Finland Research Discussion Papers 14/2022, Bank of Finland.
    5. Piriu, Andreea Alexandra, 2021. "Trade Shocks, Job Insecurity and Individual Health," GLO Discussion Paper Series 992, Global Labor Organization (GLO).
    6. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
    7. Cosimo Beverelli & Rohit Ticku, 2023. "Global Livestock Trade and Infectious Diseases," RSCAS Working Papers 2023/09, European University Institute.
    8. Dorn, David & Levell, Peter, 2021. "Trade and Inequality in Europe and the US," CEPR Discussion Papers 16780, C.E.P.R. Discussion Papers.
    9. Fernández Guerrico, Sofía, 2021. "The effects of trade-induced worker displacement on health and mortality in Mexico," Journal of Health Economics, Elsevier, vol. 80(C).
    10. Lai, Tat-kei & Lu, Yi & Ng, Travis, 2022. "Import Competition and Workplace Safety in the U.S. Manufacturing Sector," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 24-42.
    11. Deng, Saiying & Mao, Connie X. & Pu, Xiaoling & Xu, Yuan, 2023. "Import penetration and workplace safety," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 149-161.
    12. O'Brien, Rourke & Bair, Elizabeth F. & Venkataramani, Atheendar S., 2022. "Death by Robots? Automation and Working-Age Mortality in the United States," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 59(2), pages 607-628.
    13. Lina Baranauskaitė & Daiva Jurevičienė, 2021. "Import Risks of Agricultural Products in Foreign Trade," Economies, MDPI, vol. 9(3), pages 1-15, July.
    14. HAYAKAWA Kazunobu & ITO Tadashi & URATA Shujiro, 2022. "Impacts of Increased Chinese Imports on Japan’s Labor Market: Firm and Regional Aspects," Discussion papers 22037, Research Institute of Economy, Trade and Industry (RIETI).
    15. HAYAKAWA Kazunobu & URATA Shujiro & YAMANOUCHI Kenta, 2022. "Import Competition from China and Markup Dispersion," Discussion papers 22031, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    health behaviour; health; routine tasks; import competition; hospitalisation; mortality;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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