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Racial and Ethnic Inequality and the China Shock

Author

Listed:
  • Lisa B. Kahn
  • Lindsay Oldenski
  • Geunyong Park

Abstract

Minority workers tend to be disproportionately harmed by negative economic shocks. Indeed, we show that Hispanic populations experienced worse employment losses due to import competition from China, relative to whites, largely due to lower education levels. In contrast, Black-white employment and wage gaps actually narrowed due to relative growth in non-manufacturing sectors. We show that Black workers were less attached to manufacturing by 2000, compared to whites, and were therefore more poised to take advantage of China shock induced reallocation to services. The lasting negative impacts of the China shock on exposed communities were primarily driven by white workers.

Suggested Citation

  • Lisa B. Kahn & Lindsay Oldenski & Geunyong Park, 2022. "Racial and Ethnic Inequality and the China Shock," NBER Working Papers 30646, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:30646
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    Cited by:

    1. Ioannis Kospentaris & Leslie S. Stratton, 2025. "The evolution of labor market disparities between Hispanic and non-Hispanic men: 1970–2019," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(1), pages 1-21, March.
    2. David Autor & David Dorn & Gordon Hanson & Maggie R. Jones & Bradley Setzler, 2024. "Places versus People: The Ins and Outs of Labor Market Adjustment to Globalization," Working Papers 24-78, Center for Economic Studies, U.S. Census Bureau.
    3. Hanson, Gordon H. & Moretti, Enrico, 2025. "Where Have All the Good Jobs Gone? Changes in the Geography of Work in the U.S., 1980-2021," SocArXiv z6qkn_v1, Center for Open Science.

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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