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Good Jobs, Bad Jobs: What's Trade Got To Do With It?

Author

Listed:
  • Lake, James

    (Southern Methodist University)

  • Millimet, Daniel L.

    (Southern Methodist University)

Abstract

Using US local labor markets between 1990 and 2010, we analyze the heterogeneous impact of rising trade exposure on employment growth of 'good' and 'bad' jobs. Three salient findings emerge. First, rising local exposure to import competition, via falling US tariffs or rising Chinese import penetration, reduces (increases) employment growth of bad (good) jobs. Conversely, improved local access to export markets, via falling foreign tariffs, increases (reduces) employment growth of bad (good) jobs. Second, falling US tariff protection is substantially more important, economically and statistically, than rising Chinese import penetration. Third, globalization generates occupational polarization but not job polarization.

Suggested Citation

  • Lake, James & Millimet, Daniel L., 2016. "Good Jobs, Bad Jobs: What's Trade Got To Do With It?," IZA Discussion Papers 9814, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9814
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    References listed on IDEAS

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    5. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters, in: Globalization and Poverty, pages 291-336, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Sanchari Choudhury, 2021. "Regulation and Corruption: Evidence from the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 897-934, August.
    2. Tempesti, Tommaso, 2015. "Fringe Benefits and Import Competition," MPRA Paper 69842, University Library of Munich, Germany.
    3. Leonardi, Marco & Meschi, Elena, 2021. "Do Non-tariff Barriers to Trade Save American Jobs and Wages?," IZA Discussion Papers 14162, Institute of Labor Economics (IZA).
    4. Tommaso Tempesti, 2020. "Fringe Benefits and Chinese Import Competition," Southern Economic Journal, John Wiley & Sons, vol. 86(4), pages 1307-1337, April.

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    More about this item

    Keywords

    trade liberalization; China; local labor markets; job polarization; occupational polarization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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