Academic Literature

US / The decline of manufacturing employment and trade with China

U.S. manufacturing employment fluctuated around 18 million workers between 1965 and 2000 before plunging 18 percent from March 2001 to March 2007. In this paper, the authors find a link between this sharp decline and the U.S. granting of Permanent Normal Trade Relations (PNTR) to China.

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Industries where the threat of tariff hikes declines the most experience more severe employment losses along with larger increases in the value of imports from China and the number of firms engaged in China-U.S. trade. These results are robust to other potential explanations of the employment loss, and we show that the U.S. employment trends differ from those in the E.U., where there was no change in policy.

Chosen excerpts by Job Market Monitor. Read the whole story at 

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via FRB: FEDS Abstract 2014-04.

Discussion

4 thoughts on “US / The decline of manufacturing employment and trade with China

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  1. Pingback: Manufacturing Jobs in US / The debate | Job Market Monitor - February 3, 2014

  2. Pingback: US / Manufacturing in International Perspective | Job Market Monitor - February 26, 2014

  3. Pingback: NAFTA – Nearly 700,000 U.S. jobs have been lost or displaced writes the AFL-CIO | Job Market Monitor - March 28, 2014

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