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Import competition and labor regulation: Worker-level evidence

Author

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  • Basco, Sergi
  • Liégey, Maxime
  • Mestieri, Martí
  • Smagghue, Gabriel

Abstract

How does labor regulation shape worker adjustment to import competition? We estimate the effect of collective agreements on French workers’ earnings during the rise of Chinese im- port competition. Using a nationally-representative matched employer-employee panel and collective agreements data, we document that the negative effect of Chinese competition on workers’ earnings is stronger in more regulated industries. In addition, we find that this ex- acerbation effect is concentrated among workers in low-wage occupations, such as technical staff and skilled production workers.

Suggested Citation

  • Basco, Sergi & Liégey, Maxime & Mestieri, Martí & Smagghue, Gabriel, 2025. "Import competition and labor regulation: Worker-level evidence," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525002587
    DOI: 10.1016/j.econlet.2025.112421
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    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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