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Titel
Labor market adjustment to third party competition: evidence from Mexico / Raymond Robertson (Texas A&M University and IZA), Timothy J Halliday (University of Hawaii at Manoa and IZA), Sindhu Vasireddy (University of Hawaii at Manoa) ; IZA Institute of Labor Economics
VerfasserRobertson, Raymond In der Gemeinsamen Normdatei der DNB nachschlagen ; Halliday, Timothy In der Gemeinsamen Normdatei der DNB nachschlagen ; Vasireddy, Sindhu
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, November 2018
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Elektronische Ressource
Umfang1 Online-Ressource (53 Seiten) : Diagramme
SerieDiscussion paper ; no. 12002
URNurn:nbn:de:hbz:5:2-174066 Persistent Identifier (URN)
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Labor market adjustment to third party competition: evidence from Mexico [0.66 mb]
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Zusammenfassung (Englisch)

China's exports reduce wages in importing countries, but few studies have looked at competition in third party markets. We examine labor market outcomes in Mexicos apparel and textile sectors associated with U.S. apparel and textile imports from China. Using data on U.S. imports in conjunction with quarterly Mexican labor force surveys, we show that U.S. imports from China are associated with a reduction of employment in Mexicos textile and apparel sectors. These effects are the most pronounced for the least educated. Wages were not impacted on net except for the poorest indicating stronger local labor market ties in the left tail of the wage distribution. Notably, reductions in labor demand due to reduced textile imports had spill-overs beyond these sectors. Finally, the effects of trade-induced demand shocks dissipate after about two quarters indicating low firm-level adjustment costs.