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Effects of Chinese Import Competition on U.S. Self-employment

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Abstract

This paper investigates effects of increased Chinese import competition (following a change in U.S. trade policy that eliminated uncertainties surrounding tariff rates on Chinese imports) on self-employment across U.S. local markets. Areas most exposed to the trade policy change experienced a more significant decline in self-employment, which, in turn, explains about an 11.5% reduction in total employment. Further, effects almost entirely come from non-manufacturing sectors and are larger on in- corporated self-employed business owners. Finally, the impact varies considerably across different groups characterized by gender, age, and education, and the results are robust to the choice of controls.

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  • Bulent Unel, 2021. "Effects of Chinese Import Competition on U.S. Self-employment," Departmental Working Papers 2021-01, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2021-01
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    File URL: https://www.lsu.edu/business/economics/files/workingpapers/pap21_01.pdf
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