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The Role of Self-Employment in Mitigating Trade Shocks of Chinese Imports on U.S. County Labor Markets

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  • Liang, Jiaochen
  • Goetz, Stephan

Abstract

This paper embeds an analysis of self-employment into the framework of international trade and local economies, seeking to explain how entrepreneurship can shape local labor market response to trade shocks. We investigate the cross-effect of self-employment and change in Chinese imports on US county labor markets during 2000-2007. Our empirical results suggest that counties with higher self-employment experience smaller job losses and wage cuts in response to Chinese imports. That suggests self-employment or entrepreneurship activities in local economies mitigate adverse impacts of trade penetration.

Suggested Citation

  • Liang, Jiaochen & Goetz, Stephan, 2014. "The Role of Self-Employment in Mitigating Trade Shocks of Chinese Imports on U.S. County Labor Markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169709, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:169709
    as

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    File URL: http://ageconsearch.umn.edu/record/169709/files/Liang%20and%20Goetz_AAEA.pdf
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    References listed on IDEAS

    as
    1. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
    2. H. Siebert, 2007. "Growth Policy," Chapters,in: Elgar Companion to Neo-Schumpeterian Economics, chapter 59 Edward Elgar Publishing.
    3. Anil Rupasingha & Stephan J. Goetz, 2013. "Self-employment and local economic performance: Evidence from US counties," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 141-161, March.
    4. Zoltan J. Acs & Mark Sanders, 2008. "Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship," Jena Economic Research Papers 2008-069, Friedrich-Schiller-University Jena.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Community/Rural/Urban Development; International Relations/Trade;

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