Untangling Trade and Technology: Evidence from Local Labor Markets

David Autor, David Dorn and Gordon Hanson

No 7329, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We juxtapose the effects of trade and technology on employment in U.S. local labor markets between 1990 and 2007. Labor markets whose initial industry composition exposes them to rising Chinese import competition experience significant falls in employment, particularly in manufacturing and among non-college workers. Labor markets susceptible to computerization due to specialization in routine task-intensive activities experience significant occupational polarization within manufacturing and non-manufacturing but no net employment decline. Trade impacts rise in the 2000s as imports accelerate, while the effect of technology appears to shift from automation of production activities in manufacturing towards computerization of information-processing tasks in non-manufacturing.

Keywords: technological change; trade flows; import competition; skill demand; job tasks; local labor markets (search for similar items in EconPapers)
JEL-codes: F16 J21 J23 O33 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013-04
New Economics Papers: this item is included in nep-int, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

Published - published in: Economic Journal, 2015, 125(584), 621–646

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Related works:
Journal Article: Untangling Trade and Technology: Evidence from Local Labour Markets (2015)
Working Paper: Untangling Trade and Technology: Evidence from Local Labor Markets (2013)
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