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Gains or Pains? Effects of US–China Trade on US Employment: Based on a WIOT Analysis from 2000 to 2014

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  • Feng Dai
  • Ruixiang Liu
  • Shunfeng Song

Abstract

This article examines the role of US–China trade in the changes of US employment. Through an input–output framework and structural decomposition analysis method, we decompose US employment and show the importance of all the determinants of employment in one place. The result shows that, over the period of 2000–2014, improvement in labor productivity was the dominant cause of US job losses, whereas only approximately 2% of the job decline was due to imports from China. The negative impact of imports from China for consumption demand is greater than for investment demand because imports from China for consumption demand have higher labor intensity. US employment depends on intermediate exports more than on final exports, and imports from China embody more services as intermediate inputs and, therefore, contribute indirectly to the employment of services in the US.

Suggested Citation

  • Feng Dai & Ruixiang Liu & Shunfeng Song, 2021. "Gains or Pains? Effects of US–China Trade on US Employment: Based on a WIOT Analysis from 2000 to 2014," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(2), pages 365-385, January.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:365-385
    DOI: 10.1080/1540496X.2019.1578208
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