Essays On Trade Shocks And Local Labor Markets

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Essays on Trade Shocks and Local Labor Markets

Author : Chan Yu
Publisher :
ISBN 13 :
Total Pages : 288 pages
Book Rating : 4.:/5 (125 download)

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Book Synopsis Essays on Trade Shocks and Local Labor Markets by : Chan Yu

Download or read book Essays on Trade Shocks and Local Labor Markets written by Chan Yu and published by . This book was released on 2020 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first two chapters of the dissertation study how local labor market adjusts to trade shocks. The last chapter explores the relationship between economic condition change and health outcomes. In what follows, I describe my three essays. The first chapter proposes a mechanism through which local labor markets adjust to trade shocks: immigrants’ mobility. I find that immigrants are more responsive than natives to trade shocks. A $1000 increase in the import exposure leads to a 2.6 percent decline in the immigrant population but has little change in the native population. Additionally, immigrant mobility reduces the negative effects of trade shocks on native employment and wages. The study ultimately shows that natives in areas with more immigrants experience smaller declines in employment and wages. The second chapter studies the disparate impacts of trade liberalization on U.S. workers according to gender and age. Focusing on US-China trade shocks that occurred between 1990-2007, I show that these trade shocks generated larger declines in manufacturing employment and wages for older women than for older men. In contrast to prior studies, I find that discrimination and gender differences in industrial employment play relatively small roles in explaining this pattern. Instead, I present evidence that women's career interruptions from marriage and motherhood provide a more promising explanation. Within an age cohort, trade shocks depress labor market outcomes more strongly for married women with children than their male counterparts. The last chapter estimates the impact on infant birth outcomes of the farm credit crisis that hit the U.S. Midwest in the 1980s. Exploiting county-level variation in agricultural loans before the crisis, I use a difference-in-differences methodology to show that counties with more pre-existing farmland loans (per acre) experienced relatively worse infant health outcomes as the crisis unfolded. My estimates indicate that a $100 dollar increase in farmland loan (per acre) increased the incidence of low birth weight by around 0.4 percentage points and reduced the birth weight by 19 grams. Other findings show that the credit crisis intensified financial distress and tightened financial constraints for affected households, economic pressures that potentially provide a mechanism for the impact on birth outcomes. Counties that had purchased more farmland prior to the crisis suffered larger declines in their farm earnings, higher delinquency rates, and more bank failures

Essays in Labor Economics and International Trade

Author : Moises Yi
Publisher :
ISBN 13 :
Total Pages : 128 pages
Book Rating : 4.:/5 (957 download)

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Book Synopsis Essays in Labor Economics and International Trade by : Moises Yi

Download or read book Essays in Labor Economics and International Trade written by Moises Yi and published by . This book was released on 2016 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation employs tools from Labor Economics and International Trade to study how workers and labor markets adjust to economic shocks arising from trade liberalization and technological change. It contributes to the existing literature by studying several economic mechanisms that determine the magnitudes of these adjustments. The first chapter of this dissertation analyzes the roles that skill transferability and the local industry mix have on the adjustment costs of workers affected by negative trade shocks. Using rich administrative data from Germany, we construct novel measures of economic distance between sectors based on the notion of skill transferability. We combine these distance measures with sectoral employment shares in German regions to construct an index of labor market flexibility. This index captures the degree to which workers from a particular industry will be able to reallocate into other jobs. We then study the role of labor market flexibility on the effect of import shocks on the earnings and the employment outcomes of German manufacturing workers. Among workers living in inflexible labor markets, the difference between a worker at the 75th percentile of industry import exposure and one at the 25th percentile of exposure amounts to an earnings loss of roughly 11% of initial annual income (over a 10 year period). The earning losses of workers living in flexible regions are negligible. These findings are robust to controlling for a wide array of region level characteristics, including region size and overall employment growth. Our findings indicate that the industry composition of local labor markets plays an important role on the adjustment processes of workers. In the second chapter, we develop and apply a framework to quantify the effect of trade on aggregate welfare as well as the distribution of this aggregate effect across different groups of workers. The framework combines a multi-sector gravity model of trade with a Roy-type model of the allocation of workers across sectors. By opening to trade, a country gains in the aggregate by specializing according to its comparative advantage, but the distribution of these gains is unequal as labor demand increases (decreases) for groups of workers specialized in export-oriented (import-oriented) sectors. The model generalizes the specific-factors intuition to a setting with labor reallocation, while maintaining analytical tractability for any number of groups and countries. Our new notion of "inequality-adjusted" welfare effect of trade captures the full cross-group distribution of welfare changes in one measure, as the counterfactual scenario is evaluated by a risk-averse agent behind the veil of ignorance regarding the group to which she belongs. The quantitative application uses trade and labor allocation data across regions in Germany to compute the aggregate and distributional effects of a shock to trade costs or foreign technology levels. For the extreme case in which the country moves back to autarky we find that inequality-adjusted gains from trade are larger than the aggregate gains for both countries, as between-group inequality falls with trade relative to autarky, but the opposite happens for the shock in which China expands in the world economy. In the third chapter, we use detailed production data from a large Latin American garment manufacturer to study the process of technology adoption and resulting productivity changes within a firm. We find that the adoption of modern manufacturing techniques increases productivity through two channels, a direct effect and a spillover effect across adjacent production units. By exploiting the gradual introduction of new manufacturing techniques across independent production units, we estimate a direct effect on productivity of roughly 30%. We also estimate large spillovers to neighboring untreated units which amount to a 25% increase in productivity. Both of these effects accumulate slowly over time. The timing and the magnitudes of the estimated spillover effects corroborate qualitative evidence consistent with knowledge diffusion, learning and imitation.

Essays on the Local Labor Market Effects of Globalization

Author : Oscar Alejandro Mendez Medina
Publisher :
ISBN 13 : 9781339065502
Total Pages : pages
Book Rating : 4.0/5 (655 download)

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Book Synopsis Essays on the Local Labor Market Effects of Globalization by : Oscar Alejandro Mendez Medina

Download or read book Essays on the Local Labor Market Effects of Globalization written by Oscar Alejandro Mendez Medina and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of a series of papers studying the effect that globalization in its multiple forms has had on Mexican local labor markets. In Chapter 1, 'Trade Shocks and Mexican Local Labor Markets in the Great Recession', I study the role that international trade played in the transmission of the U.S. credit crisis to Mexican local labor markets. The economic opening process that Mexico started by opening up to international trade in the mid-1980s when it became a member of the GATT, and then reinforced in 1994 when NAFTA was enacted, has created a strong link between the business cycles of Mexico and the United States (Robertson, 2000). This trade-driven phenomenon has had significant consequences for Mexico's economic geography (Hanson, 1996). In particular, easier access to the U.S. market increased the level of dependence on exports to the U.S. for some Mexican municipalities. This increase in dependence was not homogenous throughout the country, mostly due to differences by municipality in transportation costs and industry specialization. This heterogeneity, plus the evolution of U.S. trade during the Great Recession (2007-2009), which involved a $40 billion drop in U.S. imports from Mexico, allows me to identify the role that these trade linkages played in the transmission of the crisis to Mexican local labor markets. I show that differences in manufacturing industry structure caused by Mexico's opening process have made a subset of Mexican municipalities especially vulnerable to economic events in the U.S. I find that Mexican regions that exported relatively more to the U.S. experienced large and significant differential effects when compared to municipalities more focused on the domestic market. Mexican regions with significant ties to the U.S. market experienced, during the crisis, a significantly larger decrease in employment and wages, and greater within local labor market adjustments than their less open counterparts, mainly characterized by large drops in manufacturing employment and significant increases in employment in the service and agricultural industries. Pursuing the same line of research, the second chapter of my dissertation explores 'The Effect of Chinese Import Competition on Mexican Local Labor Markets'. Recent estimates of the effect of globalization on labor markets have found that trade is having an increasingly larger impact on wage inequality. Particularly relevant is the "China Syndrome" study by Autor, Dorn, and Hanson (2013a), which presents evidence on the disruptive effects that import competition can have on a developed economy by estimating the impact that Chinese import competition had on U.S. local labor markets. One would expect to find that Chinese exports also had a large and significant effect on developing economies, particularly on those specialized in the production of labor-intensive goods. My paper contributes to the study of this relationship by analyzing the Mexican case. Following the methodology introduced in Autor et al. (2013a), I exploit variation across Mexican regions in import exposure stemming from initial differences in industry specialization in order to estimate the effect Chinese competition had on local Mexican labor markets. Also, by taking advantage of the Mexican exports' high dependence on the U.S. market, I estimate the effect that China-caused trade diversion had on Mexican labor markets. I find that the increase in competition decreased the employment share in manufacturing for the average Mexican local labor market. This effect was found to be larger for regions with high exposure to Chinese competition in the U.S. market, showing that there was a significant, negative indirect effect from China's trade growth. Workers' mobility also increased due to this negative shock. I name the third chapter 'Mexican Migrants' Response to a Trade Shock'. This study exploits the variation created by Chinese import competition across Mexican states and combines it with variation across U.S. states in their likelihood of receiving Mexican migrants in order to yield a causal estimate of the variation in the Mexican share of the labor force across U.S. states. The purpose of this study is both to determine whether international migration can be affected by external trade shocks, a topic very scantily studied in the economic literature of both trade and migration, and to open the doors to a study of migration effects on the receiving economy by using a plausibly exogenous shock to migration, as is the increase in import competition by China. I find that the increase in Mexican imports from China had a significant effect on Mexican workers' mobility towards the U.S. labor markets.

Essays on the Impact of Economic Shocks in the Local Labor Markets

Author : Jan Peter aus dem Moore
Publisher :
ISBN 13 :
Total Pages : 147 pages
Book Rating : 4.:/5 (863 download)

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Book Synopsis Essays on the Impact of Economic Shocks in the Local Labor Markets by : Jan Peter aus dem Moore

Download or read book Essays on the Impact of Economic Shocks in the Local Labor Markets written by Jan Peter aus dem Moore and published by . This book was released on 2013 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on the Economics of Labor Markets

Author : Alexander Wickman Bartik
Publisher :
ISBN 13 :
Total Pages : 289 pages
Book Rating : 4.:/5 (1 download)

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Book Synopsis Essays on the Economics of Labor Markets by : Alexander Wickman Bartik

Download or read book Essays on the Economics of Labor Markets written by Alexander Wickman Bartik and published by . This book was released on 2017 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three chapters on the economics of labor markets. Each chapter explores an aspect of the distributional consequences of labor market shocks due to changes in trade, regulations, or technology. The first chapter investigates the extent to which geographic variation in wage growth reflects workers' incomplete arbitrage of changing job opportunities in different locations, industries, and occupations. Without moving costs, worker adjustment to changes in labor demand would eliminate differential earnings effects between directly exposed workers and others in the same skill group. I find evidence against this full-mobility benchmark, estimating that exposure to trade with China reduces earnings of non-college educated workers in exposed Commuting Zones (CZs) by 4%, and fracking increases earnings of the original residents of exposed CZs by 7%. I estimate a model of location, sector, and occupation choice to quantify the costs that rationalize this incomplete arbitrage. Simulations show that halving these moving costs would have reduced the effect of exposure to trade with China by 35%. In the second chapter, Scott Nelson and I study recent bans on employers' use of credit reports to screen job applicants. Exploiting geographic, temporal, and job-level variation in which workers are covered by these bans, we find that the bans reduced job-finding rates for blacks by 7 to 16 log points, and increased separation rates for black new hires by 3 percentage points. We interpret these findings in a statistical discrimination model in which credit report data provides employers with a higher precision signal of workers' skills, compared to employers' prior beliefs and knowledge about workers' skills; this signal has particularly strong effects on blacks' employment outcomes. In the third chapter, Janet Currie, Christopher Knittel, Michael Greenstone, and I investigate the local welfare consequences of hydraulic fracturing. Exploiting geological and temporal variation, we find that allowing fracking leads to improvements in a wide set of economic indicators. At the same time, estimated willingness-to-pay (WTP) for the decrease in local amenities is equal to $1000 to $1,600 per household annually. Overall, we estimate that the WTP for allowing fracking equals $1,300 to $1,900 per household annually.

Essays on Trade, Immigration, and Labor Market Shocks

Author : Kyu Yub Lee
Publisher :
ISBN 13 : 9781339006611
Total Pages : 131 pages
Book Rating : 4.0/5 (66 download)

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Book Synopsis Essays on Trade, Immigration, and Labor Market Shocks by : Kyu Yub Lee

Download or read book Essays on Trade, Immigration, and Labor Market Shocks written by Kyu Yub Lee and published by . This book was released on 2015 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on the Responses to Local Labor Market Shocks

Author : Yiming Li
Publisher :
ISBN 13 : 9780438084438
Total Pages : 95 pages
Book Rating : 4.0/5 (844 download)

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Book Synopsis Essays on the Responses to Local Labor Market Shocks by : Yiming Li

Download or read book Essays on the Responses to Local Labor Market Shocks written by Yiming Li and published by . This book was released on 2018 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the impacts of local labor market changes on the US family structures and disability benefit take-up. The dissertation uses unexpected time series changes in energy prices, together with the pre-existing county exposure to the unexpected time series changes, to identify causal links between the changes in county's economic conditions and changes in marriage outcomes, fertility outcomes, and disability benefit payments.

Essays on Trade Liberalization and Labor Market Outcomes

Author : Zhe Jiang
Publisher :
ISBN 13 :
Total Pages : 159 pages
Book Rating : 4.:/5 (119 download)

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Book Synopsis Essays on Trade Liberalization and Labor Market Outcomes by : Zhe Jiang

Download or read book Essays on Trade Liberalization and Labor Market Outcomes written by Zhe Jiang and published by . This book was released on 2020 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies trade liberalization and labor market outcomes. The first two chapters examine the impact of China's trade liberalization on the adjustment of U.S. labor market for skilled and unskilled workers in a dynamic general equilibrium framework with firm heterogeneity and factor proportions. In the first chapter, I most specifically look into the effect of trade cost reduction on U.S. skill premium in an environment which I abstract from labor market friction. Featuring labor market search and matching frictions, the second chapter is part of a broader agenda on the labor market effect of China's trade liberalization and U.S. firms' offshoring decisions, with a greater focus on the dynamics of unemployment of skilled and unskilled workers. The third chapter investigates the impact of the China's increased trade openness on its local labor market. It examines the effects of China's domestic migration policy change and trade liberalization on wage inequality in China using a dynamic general equilibrium model of international trade and internal migration across regions. This dissertation showcases some of the ways trade policy can interact with firms' endogenous offshoring and entry decisions, workers' mobility choices, and labor markets frictions in a dynamic fashion. More specifically, the first chapter studies how wage inequality between skilled and unskilled workers interact with multinational firms' decisions and countries' different factor endowments using a two-country dynamic stochastic model featuring task-offshoring, heterogeneous firms and factor proportions. It shows that besides the traditional Stolper-Samuelson mechanism that shifts factors of production towards a country's comparative advantage sectors, there also exist other firm-level adjustment mechanisms that widen the wage gap after trade liberalization. It finds that in the short run, offshoring widens wage inequality between skilled and unskilled workers through increasing high-skilled wage and lowering low-skilled wage. Such effect is more announced in the beginning phase of the adjustment, and slows down over time as low-skilled wage rises faster than the cool-down of high-skilled wage increase. The intensive margin and the extensive margin are both active in shaping rising wage gap in the home country, with the latter playing a more important role in the short to medium run compared to the beginning stage following the shock. The second chapter studies the dynamic effects of offshoring on the unemployment rates and wage inequality across the high-skilled and low-skilled workers through the dynamics of firms' production location and entry decisions in general equilibrium. First, I examine the dynamic effects of offshoring cost reduction due to China's trade liberalization. Estimates from vector autoregressions (VARs) show that a decrease in offshoring costs is associated with a short-lived increase in low-skilled unemployment, but a persistent decline in high-skilled unemployment and a less persistent expansion of wage gap in the source country. Second, I build a two-country trade-in-task model with firm heterogeneity, endogenous selection into entry and offshoring as well as search and matching frictions to study the channels through which offshoring cost reductions affect the labor market outcomes for different skill groups over time. The model successfully reproduces the VAR evidence and highlights the importance of endogenous firm entry and labor market frictions in generating the empirical dynamic responses of wage and unemployment across different skill groups. The third chapter investigates China's labor market's responses to its own trade liberalization, which is a relatively less explored topic compared to the relationship between the China shock and labor market changes in other countries. Using data from CHIP (Chinese Household Income Project), this chapter aims to fill this gap by estimating the effects of trade liberalization on Chinese local labor markets. In addition, it investigates changes in urban to rural wage inequality and skill premium in urban and rural areas separately with the availability of surveys conducted in urban and rural households. In the model, a dynamic general equilibrium framework with heterogeneous firms, heterogeneous workers and internal migration is employed to study the impact of policy-generated trade cost reduction and easing of migration restrictions on Chinese wage inequality. I focus on the role of labor mobility that characterizes the large rural-to-urban migration in the midst of trade liberalization in shaping skill premium and urban to rural wage inequality. Calibrating the changes in policy-generated migration cost reduction and trade cost decline, as well as productivity increase in the tradable sector, this paper analyzes the responses of different measures of wage inequality and other macroeconomics variables following these shocks. This dissertation highlights the role of interaction of firm dynamics, factor endowments and labor market frictions in shaping the labor market adjustments. The positive effects of offshoring on the labor market for workers regardless of skill levels suggest that more trade frictions designed to restrict offshoring is likely to hinder firm entry, which is a key driver that contributes to higher wages and lower unemployment rates of both skilled and unskilled workers over time. It also points to the importance of labor market reforms by showing that easing of migration restriction and search and matching frictions are both beneficial to exports and wages of all workers, with consequences of rising wage inequality though.

Essays on International Trade and Economic Development

Author : Zhimin Li
Publisher :
ISBN 13 :
Total Pages : 116 pages
Book Rating : 4.:/5 (16 download)

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Book Synopsis Essays on International Trade and Economic Development by : Zhimin Li

Download or read book Essays on International Trade and Economic Development written by Zhimin Li and published by . This book was released on 2018 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters regarding international trade and economic development. In the first two chapters I explore how China’s economic rise to the global stage affects resource allocations inside and outside the country, and in the third chapter I present a new method to infer risk sharing regimes pertinent to studying consumption behavior in developing countries. The first chapter studies how the "China shock"--the remarkable growth in China's productivity and trade activities since its accession to the World Trade Organization (WTO)--affects China's labor market and real exchange rate dynamics. I apply a dynamic trade and spatial equilibrium model to jointly explain two distinctive features of China's economic growth: the structural transformation, as characterized by the reallocation of labor from agriculture to manufacturing and services, and the sluggish appreciation of the real exchange rate, a puzzle from the perspective of a standard international economics model. The model highlights the role of the subsistence sector in shaping the patterns of the structural transformation and real exchange rate dynamics. Using inter-regional trade and migration data, I calibrate the model to decompose the ``China shock" into productivity shocks and trade shocks and show that the two features above arise naturally from the interaction between the labor market and observed shocks to productivity and trade costs. I find that while productivity growth is the primary source of the structural transformation, the accession to the WTO explains about 35% of the rise in the employment share and 20% of the increase in the real wage in the manufacturing sector. Welfare gains from the "WTO entry" are 27% on average and would be larger if complemented by relaxing labor restrictions further. By accounting for trade costs, the subsistence sector, and labor market frictions, the model generates dynamics for China's real exchange rate consistent with the data. The second chapter studies the effects of real estate investments by foreign Chinese on local economies in the United States. This chapter is co-authored with Leslie S. Shen and Calving Zhang. We document an unprecedented surge in housing purchases by foreign Chinese in the US over the past decade and analyzes their effects on US local economies. Using transaction-level data on housing purchases, we find that the share of purchases by foreign Chinese in the California real estate market increased more than tenfold during the period of 2007-2013 relative to earlier years. In particular, these purchases have been concentrated in zip codes that are historically populated by ethnic Chinese, making up for more than 10\% of the total real estate transactions in these neighborhoods in 2013. We exploit the cross-sectional variation in the concentration of Chinese population settlement across zip codes during the pre-sample period to instrument for the volume of housing purchases by foreign Chinese. Our results show that housing purchases by foreign Chinese significantly increased local housing prices as well as local employment. Our evidence highlights the role of foreign investments in local employment, especially in times of economic downturns. The third chapter proposes a novel approach to test alternative theories of risk sharing--full insurance, self-insurance, and private information--in a unified framework. Given the prevalence of informal insurance in developing countries to share consumption risks, studying risk sharing regimes is important. A distinguishing feature of the framework presented in this chapter is that it accounts for aggregate shocks and does not require data on interest rates, an important advantage for studying rural economies. Applying the approach to a longitudinal dataset from Tanzania, I reject models of full insurance and private information and find evidence of self-insurance. An incorrect inference on the insurance regime could underestimate the welfare loss from risk by as much as ten times.

Essays on Local Labor Markets

Author : Federica Daniele
Publisher :
ISBN 13 :
Total Pages : 192 pages
Book Rating : 4.:/5 (112 download)

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Book Synopsis Essays on Local Labor Markets by : Federica Daniele

Download or read book Essays on Local Labor Markets written by Federica Daniele and published by . This book was released on 2018 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is composed of three essays in which I analyze how heterogeneity in productivity, either on the worker or on the firm side, interacts with the size of local labor markets and a set of outcomes of interest. In the first chapter, I analyze how the presence of firm-level uncertainty affects consumers and cities. I provide evidence supporting entrepreneurial risk-seeking in the non-tradable sector and that this has the strongest consequences for competition in large cities. I show how a reduction in uncertainty dampened entry and competition, and reduced the attractiveness of consumer cities. In the second chapter, I analyze the role of large firms for local labor market volatility. I provide empirical and narrative evidence supporting the existence of granularity- driven business cycles. I discuss the im-portance of size-dependent policies with respect to the systemic risk externality imposed by large firms on the economy. In the third chapter, I analyze how indi-vidual specialization shapes the urban wage premium. I investigate to what extent changes in specialization have accounted for the divergence in US workers loca-tion choices. I show that the evolution of specialization can explain the increase in between-cities wage inequality for high-skilled workers, while it counteracted the increase in the average skill premium.

Essays on Local Labor Markets

Author :
Publisher :
ISBN 13 :
Total Pages : 214 pages
Book Rating : 4.:/5 (953 download)

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Download or read book Essays on Local Labor Markets written by and published by . This book was released on 2016 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: Progressive income taxes provide a disincentive for workers to live in high productivity local labor markets, potentially leading to a spatial misallocation of labor. Relative to previous work, Chapter 1 relaxes two key assumptions; 1) that workers are perfectly mobile and 2) that workers are homogeneous. These generalizations allow us to better quantify the impact of federal income taxes, as well as analyze the associated equity-efficiency trade-off, which has not previously been studied in a spatial context. To quantify these effects, we augment an empirical spatial equilibrium model (Diamond, 2015) to incorporate taxes and estimate it using Census data. We find that the optimal federal income tax code is substantially more progressive than the current tax code, i.e. that redistribution concerns outweigh the efficiency costs of income taxes in a spatial equilibrium. High school graduates are substantially less likely to move between states than college graduates. If moving costs increase with distance, then a stronger spatial correlation in the value of nearby locations will decrease migration rates. In Chapter 2, I document that the spatial correlation in average (log) wages, by MSA, is stronger for high school graduates. I estimate a location choice model in the spirit of McFadden(1978) and Berry, Levinsohn and Pakes(2004) to assess the quantitative importance of this empirical relationship. Counterfactual experiments examine migration rates for high school graduates as if they faced the same spatial correlation in wages as college graduates.

Three Essays on the Choice of College Major and Trade Exposure

Author : Yu-Siang Wu
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.4/5 (387 download)

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Book Synopsis Three Essays on the Choice of College Major and Trade Exposure by : Yu-Siang Wu

Download or read book Three Essays on the Choice of College Major and Trade Exposure written by Yu-Siang Wu and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three chapters on the effects of import exposure. For my dissertation I mainly use the variation of import competition across local labor markets to explore its impact on labor market outcomes (e.g., wages and employment status), human capital investment decisions (choice of college major), and education-job mismatch.Chapter one explores the relationship between increasingly intense Chinese import competition and American college students' choice of major in the 2000s. By employing a modified version of the measure for Chinese import competition from Autor, Dorn, and G. Hanson (2013) and analyzing the relationship between industries and college majors, I find that rising Chinese trade exposure of nineteen industries in the 2000s has a negative effect on American students' choice ofsix engineering majors. The magnitudes of the effects range from 0.62 to 0.69 percentage point decreases in the probability of choosing those six engineering majors. I also find that males are more negatively affected by Chinese import competition in terms of the choice of the six engineering majors, whereas no significant results exist if I restrict my sample to females.Chapter two analyzes how increased trade exposure affects students' choice of STEM major. I first present a simple model to illustrate how trade exposure impacts students' utility functions through their self-beliefs about labor market outcomes and then use assorted data to show that import competition positively affects the choice of STEM major. I find that increased import exposure in the 2000s leads to 1.05 and 0.72 percentage point increases in the probability of choosing STEM majors for college underclassmen and upperclassmen, respectively. As for labor market outcomes, my results suggest that a rise in import competition leads to a pronounced negative effect on weekly wages, employment status, and full-time employment across STEM and non-STEM occupations from the late 1990s through the 2000s. STEM occupations, however, are less negatively impacted by import competition, which helps explain why a rise in import exposure increases the probability of students choosing STEM majors.Chapter three investigates the impact of import exposure on education-occupation mismatch. I first use the concept of a matching function to explain the connection between mismatch and the supply of and demand for college graduates. Next, I use an input-output table to construct a measure of import exposure that accounts for both direct and indirect trade shocks. Findings show that increased import exposure leads to a rise in education-occupation mismatch from 2011 through 2019. Moreover, for the supply side I present that a rise in import exposure significantly increases the number of bachelor's degrees awarded in 4-year colleges and in most degree fields. However, for the demand side, I do not observe corresponding increases in occupational employment for most fields of education. The unbalanced demand for and supply of college graduates might potentially explain the rise in education-occupation mismatch.

Essays on Local Labor Markets

Author : Emek Basker
Publisher :
ISBN 13 :
Total Pages : 109 pages
Book Rating : 4.:/5 (519 download)

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Book Synopsis Essays on Local Labor Markets by : Emek Basker

Download or read book Essays on Local Labor Markets written by Emek Basker and published by . This book was released on 2002 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) The third chapter documents a small permanent effect of idiosyncratic shocks to agricultural revenues - due to variation in crop yields and crop prices - on the number of farms in the United States. Using county-level data on the number of farms by size and ownership structure (family-owned vs. corporate-owned), I show that following negative deviations from expected revenue, the number of farms declines; this decline is disproportionaly due to a decline in the numbers of small and/or family-owned farms.

Three Essays on Labor Market Dynamics in Brazil

Author : Laura Connolly
Publisher :
ISBN 13 :
Total Pages : 164 pages
Book Rating : 4.:/5 (14 download)

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Book Synopsis Three Essays on Labor Market Dynamics in Brazil by : Laura Connolly

Download or read book Three Essays on Labor Market Dynamics in Brazil written by Laura Connolly and published by . This book was released on 2018 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first essay, we use linked employer-employee data for the formal labor market in Brazil to examine the relative importance of firm age and firm size for job creation and destruction in Brazil. We find that firm age is a more important determinant of job creation in Brazil than is firm size; young firms and firm start-ups create a relatively high number of jobs in Brazil. We also find that young firms are more likely to exit the market and have higher levels of employment volatility. We, therefore, condition the job creation analysis on job stability and find that young firms and large firms create most of the stable jobs in Brazil. In the second essay, I analyze the impact of a trade shock on gender-specific local labor market outcomes in Brazil. I use an instrumental variable approach and linked employer-employee data to estimate the effect of both increased imports from China and exports to China on labor market outcomes in Brazil. Exports to China increase female employment growth in both the traded sector and the non-traded sector. Increased trade with China also increases female wage growth in both sectors; however, this does not translate to any improvements in the average wage ratio. In the third and final essay, we analyze the effect of the China trade shock on labor market reallocation and migration in Brazil. Microregions more exposed to exports to China experienced higher migration rates, but those more exposed to imports from China experienced lower migration rates. Additionally, workers employed in microregions more exposed to increased imports are: (1) less likely to transition from the traded sector to nonemployment, but (2) more likely to transition from nonemployment to the nontraded sector. However, we do not find many significant effects of export exposure on labor reallocation across industries or nonemployment.

Essays on the Role of the Firm in Labor Economics

Author : Benjamin Simpson Smith
Publisher :
ISBN 13 :
Total Pages : 251 pages
Book Rating : 4.:/5 (17 download)

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Book Synopsis Essays on the Role of the Firm in Labor Economics by : Benjamin Simpson Smith

Download or read book Essays on the Role of the Firm in Labor Economics written by Benjamin Simpson Smith and published by . This book was released on 2018 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter of this dissertation studies the causes of rising sorting between high-skill workers and high-paying firms. Despite accounting for a substantial share of rising wage inequality, little is known about how or why sorting is rising. To understand how, I develop a novel decomposition method to measure the relative importance of different worker flow channels. I find that labor market entry of young workers accounts for about half of the total rise in sorting. To understand why sorting is rising, I use exogenous variation induced by the fall of the Soviet Union to estimate the effect of trade liberalization on rising sorting within German local labor markets. I find that export exposure can account for 14% of the rise in sorting. I then apply the decomposition method to the export-induced changes in employment to confirm an important role for labor market entry in rising sorting. The second chapter studies the effect of temporary employment shocks on the future earnings of professional golfers. Although a large literature documents the persistent effects of temporary employment shocks on the earnings of wage-and-salary workers, we have little evidence on the effects on self-employed workers. I exploit entry rules of the PGA TOUR to estimate the long-term effects of temporary employment shocks using a regression discontinuity design. Although, I find large earnings differences in first year after an employment shock, these differences quickly dissipate. Furthermore, I find no effects of employment shocks on performance. Golfers have less job stability than typical workers and these differences likely explain why the earnings losses of golfers are less persistent than of wage-and-salary workers. The third chapter studies the evolution of wages at large firms. Although large firms have paid significantly higher wages for over a century, we document that the large-firm wage premium has declined over the last thirty years. Decomposing pay into worker and firm fixed effects, we show that the decline is due to a reduction in firm effects at large firms, while worker composition has changed little. We also find that the majority of the change occurs within industries.

Essays on Firms in International Trade

Author : Jan Frederik Schlupp
Publisher :
ISBN 13 :
Total Pages : 250 pages
Book Rating : 4.:/5 (125 download)

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Book Synopsis Essays on Firms in International Trade by : Jan Frederik Schlupp

Download or read book Essays on Firms in International Trade written by Jan Frederik Schlupp and published by . This book was released on 2021 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconomic phenomena are ultimately the aggregation of a large number of micro decisions. In the case of international trade, decisions at both the plant and the firm level ultimately drive trends in the aggregate data. All three chapters in this dissertation focus on extending our understanding of the decisions made by exporters. In the first chapter,''Agglomeration and Local Spillover Effects of US Exporters'', I extend the study of local area information frictions in the context of exporting. Leveraging a novel dataset of establishment level exports in the US, I show for the first time in the US context that information about foreign demand affects entry and exit decisions into exporting at the county level. I extend a common model of social learning to incorporate the multi-dimensional nature of exporting choices. The second chapter,''The Local-Area Impact of Exporting'', details the creation of the establishment level export dataset. It also uses the novel detailed look into regional trade to show the additional impact of the 2007-2009 collapse in trade during the Great Recession on local labor market outcomes in counties which are more exposed to trade shocks. Partly inspired by the first chapter's observation that intermittent exporting is difficult to rationalize in standard models of trade, the third chapter, ``US exporters between 1993-2017'', documents how the export decisions of US exports vary over their life-cycle. Each of these chapters contributes new understanding of establishment export decisions at the micro-level, and taken together show that as data quality improves, the local environment of firms and exporters will increasingly matter for targeted macroeconomic interventions

New-Keynesian Trade

Author : Andrés Rodríguez-Clare
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (12 download)

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Book Synopsis New-Keynesian Trade by : Andrés Rodríguez-Clare

Download or read book New-Keynesian Trade written by Andrés Rodríguez-Clare and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a growing empirical consensus that trade shocks can have important effects on unemployment and nonemployment across local-labor markets within an economy. This paper introduces downward nominal wage rigidity to an otherwise standard quantitative trade model and shows how this framework can generate changes in unemployment and nonemployment that match those uncovered by the empirical literature studying the "China shock.” We also compare the associated welfare effects predicted by this model with those in the model without unemployment. We find that the China shock leads to average welfare increases in most U.S. states, including many that experience unemployment during the transition. However, nominal rigidities reduce the overall U.S. gains from the China shock between one and two thirds. In addition, there are ten states that experience welfare losses in the presence of downward nominal wage rigidity but would have experienced welfare gains without it.