Labor market effects of import competition: Theory and evidence from the textile and apparel industries
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
Volume (Year): 27 (1999)
Issue (Month): 2 (June)
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NBER Working Papers
5037, National Bureau of Economic Research, Inc.
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