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The effect of an increase in imports from China on local labor markets in Japan

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  • Taniguchi, Mina

Abstract

I analyze the effects of increased imports from China on Japanese prefecture-level local labor markets from 1995 to 2007. This paper presents the evidence that the growth in imports from China positively affected manufacturing employment growth at the prefecture level in Japan. This result gives contrast to the finding of Autor, Dorn and Hanson (2013, AER) for local labor markets in the United States. Furthermore, estimations with decomposed types of the imported goods suggest that an increase in intermediate imports attributes to the positive effects of import growth from China.

Suggested Citation

  • Taniguchi, Mina, 2019. "The effect of an increase in imports from China on local labor markets in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 1-18.
  • Handle: RePEc:eee:jjieco:v:51:y:2019:i:c:p:1-18
    DOI: 10.1016/j.jjie.2018.09.001
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    Cited by:

    1. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2020. "Adjusting to China competition: Evidence from Japanese plant-product-level data," Working Papers hal-03086387, HAL.
    2. Theresa M. Greaney & Kozo Kiyota, 2020. "The gravity model and trade in intermediate inputs," The World Economy, Wiley Blackwell, vol. 43(8), pages 2034-2049, August.
    3. Hayakawa, Kazunobu & Ito, Tadashi & Urata, Shujiro, 2021. "Impacts of increased Chinese imports on Japan’s labor market," Japan and the World Economy, Elsevier, vol. 59(C).
    4. Kozo Kiyota & Sawako Maruyama & Mina Taniguchi, 2021. "The China syndrome: A cross‐country evidence," The World Economy, Wiley Blackwell, vol. 44(9), pages 2758-2792, September.
    5. Kagitani, Koichi & Harimaya, Kozo, 2020. "Does international trade competition influence candidates and voters? The case of Japanese Lower House elections," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).
    6. SAITO Yukiko & KAINUMA Shuhei & Michal FABINGER, 2020. "China's Impact on Regional Employment: Propagation through Supply Chains and Co-agglomeration Pattern," Discussion papers 20054, Research Institute of Economy, Trade and Industry (RIETI).
    7. Egger, Peter H. & Kaynak, Pinar & Zoller-Rydzek, Benedikt, 2020. "Indirect effects of trade shocks on Turkish local labor markets," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    8. Ahn, JaeBin & Choi, Moon Jung, 2020. "From firm-level imports to aggregate productivity: Evidence from Korean manufacturing firm data," Japan and the World Economy, Elsevier, vol. 56(C).
    9. Zhi, Yan & Bao, Di & Luo, Changyuan, 2019. "The China effect: Evidence from data at firm level in Thailand," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    10. Endoh, Masahiro, 2021. "The effect of import competition on labor income inequality through firm and worker heterogeneity in the Japanese manufacturing sector," Japan and the World Economy, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    International trade; Local labor markets; Import competition; Intermediate imports;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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