IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-21-00531.html
   My bibliography  Save this article

How does import competition impact job type?

Author

Listed:
  • 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

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P176.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Hong Zuo, 2016. "How does informal employment impact income inequality?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(15), pages 1117-1120, October.
    7. 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.
    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).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Costa, Francisco & Garred, Jason & Pessoa, João Paulo, 2016. "Winners and losers from a commodities-for-manufactures trade boom," Journal of International Economics, Elsevier, vol. 102(C), pages 50-69.
    5. Torreggiani, Sofia & Andreoni, Antonio, 2023. "Rising to the challenge or perish? Chinese import penetration and its impact on growth dynamics of manufacturing firms in South Africa," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 199-212.
    6. Andrés César & Guillermo Falcone, 2020. "Heterogeneous Effects of Chinese Import Competition on Chilean Manufacturing Plants," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 1-60, December.
    7. Connolly, Laura, 2022. "The effects of a trade shock on gender-specific labor market outcomes in Brazil," Labour Economics, Elsevier, vol. 74(C).
    8. Sofia Torreggiani & Antonio Andreoni, 2019. "Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa," WIDER Working Paper Series wp-2019-63, World Institute for Development Economic Research (UNU-WIDER).
    9. Li, Kun & Mesquita Moreira, Mauricio, 2019. "The Effect of Chinese Import Competition on El Salvador’s Labor Market," IDB Publications (Working Papers) 9971, Inter-American Development Bank.
    10. Heckl, Pia, 2024. "Import Shocks and Gendered Labor Market Responses: Evidence from Mexico," Labour Economics, Elsevier, vol. 88(C).
    11. Anna Fabry & Goedele Broeck & Miet Maertens, 2022. "Gender Inequality and Job Satisfaction in Senegal: A Multiple Mediation Model," Journal of Happiness Studies, Springer, vol. 23(5), pages 2291-2311, June.
    12. Yane, Haruka & Yamada, Hiroyuki, 2015. "Import Competition from Neighbors: Impacts on Performances of Enterprises in Vietnam," Conference papers 332621, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Fernández Guerrico, Sofía, 2021. "The effects of trade-induced worker displacement on health and mortality in Mexico," Journal of Health Economics, Elsevier, vol. 80(C).
    14. Kis-Katos, Krisztina & Sparrow, Robert, 2015. "Poverty, labor markets and trade liberalization in Indonesia," Journal of Development Economics, Elsevier, vol. 117(C), pages 94-106.
    15. Rafael Dix-Carneiro & Brian K. Kovak, 2015. "Trade Reform and Regional Dynamics: Evidence From 25 Years of Brazilian Matched Employer-Employee Data," NBER Working Papers 20908, National Bureau of Economic Research, Inc.
    16. Alexandra Sotiriou & Andrés Rodríguez-Pose, 2021. "Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile," Journal of Development Studies, Taylor & Francis Journals, vol. 57(12), pages 2095-2111, December.
    17. Haas, Levi & Schenk-Hoppé, Klaus R., 2019. "International Trade: Smarten up to talk the talk," MPRA Paper 99096, University Library of Munich, Germany.
    18. Tanaka, Kiyoyasu & Greaney, Theresa M., 2024. "Trade and employment in the formal and informal sectors: A natural experiment from Cambodia," Journal of Asian Economics, Elsevier, vol. 90(C).
    19. Lastauskas, Povilas & Proškutė, Aurelija & Žaldokas, Alminas, 2023. "How do firms adjust when trade stops?," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 287-307.
    20. Juan Blyde & Matias Busso & Kyunglin Park & Dario Romero, 2023. "Short‐ and long‐run labor market adjustment to import competition," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1552-1569, September.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-21-00531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.