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How does import competition impact job type?

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  • Lourenco S. Paz

    (Baylor University)

Abstract

This study investigates how the increase in the import competition experienced by the Brazilian economy during 2000–2012 impacted the type of jobs available in manufacturing. These effects are assessed using an unordered multinomial logit model and detailed household survey data that encompass formal, informal, and self-employed workers. The empirical results indicate that a higher import penetration from China reduces the likelihood of having an informal job relative to a formal job. And a larger import penetration from the rest of the world increases the likelihood of both informal and self-employment relative to formal employment. These estimates are robust to concerns of endogeneity of the import penetration measures through the use of a control function approach.

Suggested Citation

  • Lourenco S. Paz, 2021. "How does import competition impact job type?," Economics Bulletin, AccessEcon, vol. 41(3), pages 2063-2020.
    • Handle: RePEc:ebl:ecbull:eb-21-00531
    as

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    References listed on IDEAS

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    1. Xuepeng Liu & Mary E. Lovely & Jan Ondrich, 2017. "The Location Decisions Of Foreign Investors In China: Untangling The Effect Of Wages Using A Control Function Approach," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 11, pages 191-197, World Scientific Publishing Co. Pte. Ltd..
    2. Paz, Lourenço S., 2014. "The impacts of trade liberalization on informal labor markets: A theoretical and empirical evaluation of the Brazilian case," Journal of International Economics, Elsevier, vol. 92(2), pages 330-348.
    3. Emily Conover & Melanie Khamis & Sarah Pearlman, 2022. "Job Quality and Labour Market Transitions: Evidence from Mexican Informal and Formal Workers," Journal of Development Studies, Taylor & Francis Journals, vol. 58(7), pages 1332-1348, July.
    4. Lourenço S. Paz, 2018. "The effect of import competition on Brazil’s manufacturing labor market in the 2000s: Are imports from China different?," The International Trade Journal, Taylor & Francis Journals, vol. 32(1), pages 76-99, January.
    5. Gary S. Fields, 2020. "Informality and work status," WIDER Working Paper Series wp-2020-159, World Institute for Development Economic Research (UNU-WIDER).
    6. Iacovone, Leonardo & Rauch, Ferdinand & Winters, L. Alan, 2013. "Trade as an engine of creative destruction: Mexican experience with Chinese competition," Journal of International Economics, Elsevier, vol. 89(2), pages 379-392.
    7. Hong Zuo, 2016. "How does informal employment impact income inequality?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(15), pages 1117-1120, October.
    8. Sehnbruch, Kirsten & González, Pablo & Apablaza, Mauricio & Méndez, Rocío & Arriagada, Verónica, 2020. "The Quality of Employment (QoE) in nine Latin American countries: A multidimensional perspective," World Development, Elsevier, vol. 127(C).
    9. Lourenço S. Paz & Kul Prasad Kapri, 2019. "The Effects of the Chinese Imports on Brazilian Manufacturing Workers," Economies, MDPI, vol. 7(3), pages 1-22, August.
    10. Rita K. Almeida & Lourenço S. Paz & Jennifer P. Poole, 2021. "Precarization or protection? The impact of trade and labour policies on informality," WIDER Working Paper Series wp-2021-47, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Lourenço S. Paz, 2022. "The China Shock Impact on Labor Informality: The Effects on Brazilian Manufacturing Workers," Economies, MDPI, vol. 10(5), pages 1-19, May.
    2. Lourenco Paz, 2022. "Does age modulate the impact of import competition on job type?," Economics and Business Letters, Oviedo University Press, vol. 11(4), pages 161-171.

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    More about this item

    Keywords

    Brazil; China; globalization; import penetration; informal employment; self-employment; trade openness;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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