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Gender-specific Exposure to Trade, Labor Market Adjustments, and the Family

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Listed:
  • Hiroaki MORI
  • Kiho MUROGA
  • Akira SASAHARA

Abstract

Using the sharp increase in trade with China from 1995 to 2005 as a natural experiment, we examine the impact of international trade on Japan’s labor market and family formation. By exploiting sectoral differences in gender ratios and spatial variations in sectoral specialization, we construct gender-specific exposure measures to import competition from China and export opportunities to China and examine their effects. Our results show that import competition adversely affected manufacturing employment, reduced labor force participation, and increased unemployment rates, while export opportunities had the opposite effects. These labor market impacts were particularly pronounced among young individuals in their 20s and 30s. Additionally, we find that a trade-induced improvement in women’s relative labor market conditions increased the share of never-married men and women in their 30s and early 40s.

Suggested Citation

  • Hiroaki MORI & Kiho MUROGA & Akira SASAHARA, 2025. "Gender-specific Exposure to Trade, Labor Market Adjustments, and the Family," Discussion papers 25031, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:25031
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    References listed on IDEAS

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    1. Osea Giuntella & Lorenzo Rotunno & Luca Stella, 2022. "Globalization, Fertility and Marital Behavior in a Lowest-Low Fertility Setting," CESifo Working Paper Series 9755, CESifo.
    2. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum, 2014. "The Rise Of The East And The Far East: German Labor Markets And Trade Integration," Journal of the European Economic Association, European Economic Association, vol. 12(6), pages 1643-1675, December.
    3. Abe, Yukiko, 2013. "Regional variations in labor force behavior of women in Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 112-124.
    4. Lucia Corno & Nicole Hildebrandt & Alessandra Voena, 2020. "Age of Marriage, Weather Shocks, and the Direction of Marriage Payments," Econometrica, Econometric Society, vol. 88(3), pages 879-915, May.
    5. David Autor & David Dorn & Gordon Hanson, 2019. "When Work Disappears: Manufacturing Decline and the Falling Marriage Market Value of Young Men," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 161-178, September.
    6. Masahiro Endoh, 2018. "The Effect of Import Competition on Wages in the Japanese Manufacturing Sector," Asian Economic Papers, MIT Press, vol. 17(1), pages 46-67, Winter/Sp.
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