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Import Competition and Skill Content in U.S. Manufacturing Industries

Author

Listed:
  • Yi Lu

    (National University of Singapore)

  • Travis Ng

    (Chinese University of Hong Kong)

Abstract

Skill content varies enormously across industries and over time. This paper shows that import competition can explain a significant portion of the variation in various skill measures across manufacturing industries. Industries that face more intense import competition employ more nonroutine skill sets, including cognitive, interpersonal, and manual skills, and fewer cognitive routine skills. In addition, we find that the impact of import competition on skills is not driven by imports from low-wage countries or from China. A number of robustness checks also suggest that our results are unlikely to be driven by econometric problems. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Yi Lu & Travis Ng, 2013. "Import Competition and Skill Content in U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1404-1417, October.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:4:p:1404-1417
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    Citations

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    Cited by:

    1. Ipsita Roy & Davide Consoli, 2015. "Employment Polarization in Germany: Role of Technology, Trade and Human Capital," Jena Economic Research Papers 2015-017, Friedrich-Schiller-University Jena.
    2. Francesco Vona & Giovanni Marin & Davide Consoli & David Popp, 2015. "Green Skills," CESifo Working Paper Series 5323, CESifo Group Munich.
    3. Eiichi Tomiura & Ryuhei Wakasugi & Lianming Zhu, 2014. "Task Content of Trade: A Disaggregated Measurement of Japanese Changes," The Japanese Economic Review, Japanese Economic Association, vol. 65(2), pages 238-251, June.
    4. Boris Kaiser & Michael Siegenthaler, 2016. "The Skill‐biased Effects of Exchange Rate Fluctuations," Economic Journal, Royal Economic Society, vol. 0(592), pages 756-780, May.
    5. Davide Consoli & Francesco Vona & Francesco Rentocchini, 2016. "That was then, this is now: skills and routinization in the 2000s," Industrial and Corporate Change, Oxford University Press, vol. 25(5), pages 847-866.
    6. repec:bla:worlde:v:40:y:2017:i:12:p:2676-2703 is not listed on IDEAS
    7. Arthur Korus, 2016. "Currency Overvaluation and R&D Spending," EIIW Discussion paper disbei218, Universitätsbibliothek Wuppertal, University Library.
    8. Ujjayant Chakravorty & Runjuan Liu & Ruotao Tang, 2017. "Firm Innovation under Import Competition from Low-Wage Countries," CESifo Working Paper Series 6569, CESifo Group Munich.
    9. Michele Raitano & Francesco Vona, 2017. "Competition, firm size and returns to skills: Evidence from currency shocks and market liberalisations," The World Economy, Wiley Blackwell, vol. 40(12), pages 2676-2703, December.
    10. Ryuhei Wakasugi & Taiji Furusawa, 2014. "Symposium on Empirical Studies of International Trade and Firms: Introduction," The Japanese Economic Review, Japanese Economic Association, vol. 65(2), pages 137-141, June.

    More about this item

    Keywords

    import competition; skills; labor market;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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