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New Perspectives on the Decline of US Manufacturing Employment

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  • Teresa C. Fort
  • Justin R. Pierce
  • Peter K. Schott

Abstract

We use relatively unexplored dimensions of US microdata to examine how US manufacturing employment has evolved across industries, firms, establishments, and regions. These data provide support for both trade- and technology-based explanations of the overall decline of employment over this period, while also highlighting the difficulties of estimating an overall contribution for each mechanism. Toward that end, we discuss how more careful analysis of these trends might yield sharper insights.

Suggested Citation

  • Teresa C. Fort & Justin R. Pierce & Peter K. Schott, 2018. "New Perspectives on the Decline of US Manufacturing Employment," Journal of Economic Perspectives, American Economic Association, vol. 32(2), pages 47-72, Spring.
  • Handle: RePEc:aea:jecper:v:32:y:2018:i:2:p:47-72
    Note: DOI: 10.1257/jep.32.2.47
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    Cited by:

    1. Malgouyres, Clément & Mayer, Thierry & Mazet, Clément, 2019. "Technology-induced Trade Shocks? Evidence from Broadband Expansion in France," CEPR Discussion Papers 13847, C.E.P.R. Discussion Papers.
    2. Ansgar Belke & Ulrich Volz, 2018. "The Yen Exchange Rate and the Hollowing-out of the Japanese Industry," Working Papers halshs-01917940, HAL.
    3. Fariha Kamal, 2018. "A Portrait of U.S. Factoryless Goods Producers," NBER Chapters,in: The Challenges of Globalization in the Measurement of National Accounts National Bureau of Economic Research, Inc.
    4. Kym Anderson & Sundar Ponnusamy, 2018. "Structural transformation to manufacturing and services: what role for trade?," Departmental Working Papers 2018-26, The Australian National University, Arndt-Corden Department of Economics.
    5. repec:eee:inecon:v:115:y:2018:i:c:p:203-222 is not listed on IDEAS
    6. Susan N. Houseman & Brad J. Hershbein, 2018. "Understanding the Decline of U.S. Manufacturing Employment," Upjohn Working Papers and Journal Articles 18-287, W.E. Upjohn Institute for Employment Research.
    7. Bell, Kathleen P. & Crandall, Mindy & Munroe, Darla K. & Colocousis, Chris & Morzillo, Anita, 2018. "Rural forest-based communities, economic shocks, and economic trajectories," 2018 Annual Meeting, August 5-7, Washington, D.C. 274499, Agricultural and Applied Economics Association.
    8. Pierce, Justin R. & Schott, Peter K., 2018. "Investment responses to trade liberalization: Evidence from U.S. industries and establishments," Journal of International Economics, Elsevier, vol. 115(C), pages 203-222.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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