Competing with the dragon: employment and wage effects of Chinese trade competition in 17 sectors across 18 OECD countries

"The rapid rise of China on the global economic stage could have substantial and unequal employment and wage effects in advanced industrialised democracies given China’s large volume of low-wage labour. Thus far, these effects have not been analysed in the comparative political economy literatu...

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Main Authors: Thewissen, Stefan, Van Vliet, Olaf
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Luxembourg 2014
LIS
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19115470124919336529-Competing-with-the-dragon-empl.htm
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author Thewissen, Stefan
Van Vliet, Olaf
author_facet Thewissen, Stefan
Van Vliet, Olaf
collection Library items
description "The rapid rise of China on the global economic stage could have substantial and unequal employment and wage effects in advanced industrialised democracies given China’s large volume of low-wage labour. Thus far, these effects have not been analysed in the comparative political economy literature. Building on new pooled time-series data, we analyse the effects of Chinese trade competition across 17 sectors in 18 countries between 1990 and 2007. Our empirical findings reveal overall employment declines and higher earnings inequality in sectors more exposed to Chinese imports. We devote particular attention to a new channel, increased competition from China in 59 foreign export markets, which positively affects the high-skilled whilst the low-skilled bear the brunt. Hence, this study shows that neglecting the competition in foreign countries leads to underestimation of the distributive effects of trade. More generally, our findings provide new insights into how international trade, technological change, and labour market institutions contribute to the widely observed trend of rising inequality."
format TEXT
geographic China
OECD countries
id 19115470124919336529_97e66529d39c462695c19b1ea7fc93cc
institution ETUI-European Trade Union Institute
is_hierarchy_id 19115470124919336529_97e66529d39c462695c19b1ea7fc93cc
is_hierarchy_title Competing with the dragon: employment and wage effects of Chinese trade competition in 17 sectors across 18 OECD countries
language English
physical 24 p.
Digital
publishDate 2014
publisher Luxembourg
LIS
spellingShingle Thewissen, Stefan
Van Vliet, Olaf
competition
employment
technological change
trade
wages
social inequality
labour market policy
Competing with the dragon: employment and wage effects of Chinese trade competition in 17 sectors across 18 OECD countries
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=108623592680
title Competing with the dragon: employment and wage effects of Chinese trade competition in 17 sectors across 18 OECD countries
topic competition
employment
technological change
trade
wages
social inequality
labour market policy
url https://www.labourline.org/KENTIKA-19115470124919336529-Competing-with-the-dragon-empl.htm