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The Geography of Trade and Technology Shocks in the United States

Author

Listed:
  • David H. Autor
  • David Dorn
  • Gordon H. Hanson

Abstract

This paper explores the geographic overlap of trade and technology shocks across local labor markets in the United States. Regional exposure to technological change, as measured by specialization in routine task-intensive production and clerical occupations, is largely uncorrelated with regional exposure to trade competition from China. While the impacts of technology are dispersed throughout the United States, the impacts of trade tend to be more geographically concentrated, owing in part to the spatial agglomeration of labor-intensive manufacturing. Our findings highlight the feasibility of separately identifying the impacts of recent changes in trade and technology on US regional economies.

Suggested Citation

  • David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The Geography of Trade and Technology Shocks in the United States," American Economic Review, American Economic Association, vol. 103(3), pages 220-225, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:220-25
    Note: DOI: 10.1257/aer.103.3.220
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    References listed on IDEAS

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    1. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, March.
    2. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
    3. Firpo, Sergio & Fortin, Nicole M. & Lemieux, Thomas, 2011. "Occupational Tasks and Changes in the Wage Structure," IZA Discussion Papers 5542, Institute of Labor Economics (IZA).
    4. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1279-1333.
    5. Christian Dustmann & Johannes Ludsteck & Uta Schönberg, 2009. "Revisiting the German Wage Structure," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 843-881.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marwil J. Dávila-Fernández & Lionello F. Punzo, 2018. "Some New Insights on Financialisation and Income Inequality," Department of Economics University of Siena 792, Department of Economics, University of Siena.
    2. Drivas, Kyriakos & Economidou, Claire & Karkalakos, Sotiris & Tsionas, Efthymios G., 2016. "Mobility of knowledge and local innovation activity," European Economic Review, Elsevier, vol. 85(C), pages 39-61.
    3. Kourtellos, Andros & Marr, Christa & Tan, Chih Ming, 2016. "Robust determinants of intergenerational mobility in the land of opportunity," European Economic Review, Elsevier, vol. 81(C), pages 132-147.
    4. Nicholas Bloom & Paul M. Romer & Stephen J. Terry & John Van Reenen, 2013. "A Trapped-Factors Model of Innovation," American Economic Review, American Economic Association, vol. 103(3), pages 208-213, May.
    5. Francesco Vona & G. Marin & D. Consoli, 2016. "Measures, Drivers and Effects of Green Employment : evidence from US local Labor Markets, 2006-2014," Documents de Travail de l'OFCE 2016-22, Observatoire Francais des Conjonctures Economiques (OFCE).
    6. Simona Iammarino & Andrés Rodriguez-Pose & Michael Storper, 2019. "Regional inequality in Europe: evidence, theory and policy implications," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 273-298.
    7. Francesco Vona & Giovanni Marin & Davide Consoli & David Popp, 2018. "Environmental Regulation and Green Skills: An Empirical Exploration," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 713-753.
    8. repec:eee:jeborg:v:146:y:2018:i:c:p:141-160 is not listed on IDEAS
    9. Luisa Gagliardi, 2014. "Employment and Technological Change: On the Geography of Labour Market Adjustments," SERC Discussion Papers 0165, Spatial Economics Research Centre, LSE.
    10. Gagliardi, Luisa & Iammarino, Simona & Rodríguez-Pose, Andrés, 2015. "Offshoring and the geography of jobs in Great Britain," LSE Research Online Documents on Economics 65018, London School of Economics and Political Science, LSE Library.
    11. Michael Peters & Fabian Eckert, 2016. "Urbanization, Growth and Structural Change," 2016 Meeting Papers 774, Society for Economic Dynamics.
    12. Paul Gaggl & Greg C. Wright, 2017. "A Short-Run View of What Computers Do: Evidence from a UK Tax Incentive," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 262-294, July.
    13. Gould, Eric D., 2015. "Explaining the Unexplained: Residual Wage Inequality, Manufacturing Decline, and Low-Skilled Immigration," IZA Discussion Papers 9107, Institute of Labor Economics (IZA).
    14. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo Group Munich.
    15. repec:eee:rensus:v:77:y:2017:i:c:p:1261-1271 is not listed on IDEAS
    16. Pflüger, Michael P., 2019. "Regionale Disparitäten und Regionalpolitik: Treiber der Veränderung, Handlungsbedarf und Handlungsoptionen," IZA Standpunkte 92, Institute of Labor Economics (IZA).
    17. M. Goos & Jozef Konings & Marieke Vanderweyer, 2015. "Employment Growth in Europe:The Roles of Innovation, Local Job Multipliers and Institutions," Working Papers 15-10, Utrecht School of Economics.
    18. Böckerman, Petri & Laaksonen, Seppo & Vainiomäki, Jari, 2016. "Are Jobs More Polarized in ICT Firms?," IZA Discussion Papers 9851, Institute of Labor Economics (IZA).
    19. Davide Consoli & Mabel Sánchez-Barrioluengo, 2016. "Polarization and the growth of low-skill employment in Spanish Local Labor Markets," Papers in Evolutionary Economic Geography (PEEG) 1628, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2016.
    20. Obschonka, Martin & Stuetzer, Michael & Rentfrow, Peter J. & Lee, Neil & Gosling, Samuel D. & Schmitt-Rodermund, Eva, 2018. "Fear, populism, and the geopolitical landscape: The “sleeper effect” of neurotic personality traits on regional voting behavior in the 2016 Brexit and Trump votes," MPRA Paper 88404, University Library of Munich, Germany.
    21. Nuarpear Lekfuangfu, 2017. "Intensive and Extensive Margins of Labour Supply in Thailand: Decomposing the Pattern of Work Behaviours," PIER Discussion Papers 59, Puey Ungphakorn Institute for Economic Research, revised May 2017.
    22. repec:esx:essedp:752 is not listed on IDEAS
    23. Partridge, Mark D. & Rickman, Dan & Olfert, M. Rose & Tan, Ying, 2013. "International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?," MPRA Paper 53407, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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