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Labor market effects of import competition: Theory and evidence from the textile and apparel industries


  • Ben Shippen


Since the early 1980s, much attention has been given to the possibility of trade-related job losses and wage effects in the textile and apparel industries. This paper uses aggregate time series data from the Annual Survey of Manufacturers [Bartlesman and Gray, 1996] with import price data from the Bureau of Labor Statistics [Alterman, 1991] for 1977–91 to test the effect of imports on employment and wages in textiles and apparel. Theoretical models suggest that import competition should be a factor in the determination of employment, and possibly wages, regardless of whether the U.S. is represented as a price-setter or price-taker. The empirical analysis provides some support. Copyright International Atlantic Economic Society 1999

Suggested Citation

  • Ben Shippen, 1999. "Labor market effects of import competition: Theory and evidence from the textile and apparel industries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(2), pages 193-200, June.
  • Handle: RePEc:kap:atlecj:v:27:y:1999:i:2:p:193-200
    DOI: 10.1007/BF02300238

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    References listed on IDEAS

    1. Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," NBER Working Papers 5037, National Bureau of Economic Research, Inc.
    2. Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
    3. Grossman, Gene M., 1986. "Imports as a cause of injury: The case of the U.S. steel industry," Journal of International Economics, Elsevier, vol. 20(3-4), pages 201-223, May.
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    Cited by:

    1. Daniel Rich, 2010. "Changing Elasticities of Labor Demand in U.S. Manufacturing," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(2), pages 157-168, June.

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