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Job creation, job destruction, and international competition: job flows and trade: the case of NAFTA

Author

Listed:
  • Michael W. Klein
  • Scott Schuh
  • Robert K. Triest

Abstract

This paper is a chapter in our forthcoming monograph, Job Creation, Job Destruction, and International Competition (W.E. Upjohn Institute 2003), and expands on the ideas advanced in Klein, Schuh, and Triest (2003). The chapter is a case study of the impact of the North American Free Trade Agreement (NAFTA) on the U.S. labor market in three industries: textiles and apparel, chemicals, and automobiles. NAFTA significantly altered the trade environment for these industries and contributed to changes in the bilateral export-import structure among the United States, Canada, and Mexico. Our innovation is to examine NAFTA's effect on gross job creation and destruction, the components of change in net employment. Except for a more rapid decline in apparel employment, there is little evidence of NAFTA's having had major effects on either net employment or gross job flows in these industries.

Suggested Citation

  • Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: job flows and trade: the case of NAFTA," Working Papers 02-8, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:02-8
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    References listed on IDEAS

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    Cited by:

    1. Campbell, Douglas L., 2020. "Relative Prices and Hysteresis: Evidence from US Manufacturing," European Economic Review, Elsevier, vol. 129(C).
    2. Nikolaos Terzidis & Steven Brakman & Raquel Ortega-Argiles, 2019. "Labour Markets, Trade and Technological Progress. A Meta-Study," CESifo Working Paper Series 7719, CESifo.
    3. Ligia Melo & Carlos Ballesteros, 2014. "The impact of external factors on job creation and destruction in the Colombian manufacturing sector," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 81, pages 155-186, Julio - D.
    4. Chipeta Chama & Meyer Daniel Francois & Muzindutsi Paul-Francois, 2017. "The Effect of Exchange Rate Movements and Economic Growth on Job Creation," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 62(2), pages 20-41, August.
    5. Schuster, Philip, 2012. "Employment Protection, Labor Market Turnover, and the Effects of Globalization," Economics Series 288, Institute for Advanced Studies.
    6. Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs.

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