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Import penetration and workplace safety

Author

Listed:
  • Deng, Saiying
  • Mao, Connie X.
  • Pu, Xiaoling
  • Xu, Yuan

Abstract

We examine how import penetration from China affects corporate workplace safety in U.S. manufacturing firms. Using Chinese import penetration to other eight developed countries as an instrument, we find that import penetration to the U.S. worsens worker safety. We identify two underlying economic mechanisms through which import penetration impairs workplace safety—resource constraints for safety-related investments and reduced employee safety compliance due to heightened job insecurity among U.S. workers. Finally, we find that the negative effect of import competition on worker safety is attenuated in firms that experience heightened product differentiation and market concentration, stronger union bargaining power, and higher level of social capital.

Suggested Citation

  • Deng, Saiying & Mao, Connie X. & Pu, Xiaoling & Xu, Yuan, 2023. "Import penetration and workplace safety," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 149-161.
    • Handle: RePEc:eee:quaeco:v:90:y:2023:i:c:p:149-161
    DOI: 10.1016/j.qref.2023.05.007
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    More about this item

    Keywords

    Import penetration; Workplace safety; Injury rates; Employee welfare;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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