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Estimating the impact of trade and offshoring on American workers using the current population surveys

Listed author(s):
  • Ebenstein, Avraham
  • Harrison, Ann
  • McMillan, Margaret
  • Phillips, Shannon

The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5750.

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Date of creation: 01 Aug 2011
Handle: RePEc:wbk:wbrwps:5750
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