[Local labor market effects of exporting in China]
AbstractOne striking phenomena of the macro economy in China during the past decade is the rapid exporting growth. Exporting growth provides strong demand for domestic manufacturing production and is one of the most important engines of economic growth. Using population census data and trade data, this paper examines the local labor market effects of exporting in China. Our empirical analysis suggests that exporting growth significantly promoted employment in manufacturing sector and also indirectly promoted employment in service sector. Exploiting our micro-level data, we further estimated the impact of exporting on employment by various groups and found that exporting has a more significant and larger effect on younger, less-educated, rural and women labor force. Moreover, exporting also promoted wage of workers in manufacturing and service sector, besides promoting employment. Finally, exporting lowered local income inequality since labor force in low-income group such as less-educated workers and rural workers are the main beneficiaries of exporting.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38615.
Date of creation: 10 Apr 2012
Date of revision:
Exporting; Local Labor Market; Employment; Wage; Income Inequality;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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