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Did China Tire Safeguard Save U.S. Workers?

Author

Listed:
  • Sunghoon CHUNG

    (Korea Development Institute)

  • Joonhyung LEE

    (Fogelman College of Business and Economics, The University of Memphis)

  • Thomas OSANG

    (Department of Economics, Southern Methodest University)

Abstract
While the impact of globalization on income inequality has received a lot of attention, little is known about its effect on the gender wage gap (GWG). This study argues that there is a systematic differece in GWG between exporting firms and non-exporters. By the virtue of being exposed to higher competition, exporters require greater commitment and flexibility from their employees. If commitment is not easily observable and women are precieved as less committed workers than men, exporters will statistically discriminate against female employees and will exhibit a higher GWG than non-exporters. We test this hyphesis using matched employer-employee data from the Norwegian manufacturing sector from 1996 to 2010. Our identification strategy relies on an exogeneous shock, namely, the legislative changes that increased the lenght of the parental leave that is available only to fathers. We argue that these changes have narrowed the perceived commitment gap between the genders and show that the initially higher GWG observved in exporting firms relative to non-exporters has gone down after the changes took place.

Suggested Citation

  • Sunghoon CHUNG & Joonhyung LEE & Thomas OSANG, 2015. "Did China Tire Safeguard Save U.S. Workers?," Working Papers DP-2015-26, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-26
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    References listed on IDEAS

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    Cited by:

    1. Takechi, Kazutaka, 2020. "Do domestic producers benefit from safeguards? The case of a Japanese safeguard on Chinese vegetable imports in 2001," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Alcover, M. & Crowley, M. A., 2019. "China -- Broiler Products: Can the sum of the parts be less than the whole?," Cambridge Working Papers in Economics 1985, Faculty of Economics, University of Cambridge.
    3. Sébastien Jean & Ariell Reshef, 2017. "Why Trade, and What Would Be the Consequences of Protectionism?," CEPII Policy Brief 2017-18, CEPII research center.
    4. TAKECHI Kazutaka, 2019. "Do Domestic Producers Benefit from Safeguards? The Case of a Japanese Safeguard on Chinese Vegetable Imports in 2001," Discussion papers 19057, Research Institute of Economy, Trade and Industry (RIETI).
    5. Samuel Verevis & Murat Üngör, 2021. "What has New Zealand gained from The FTA with China?: Two counterfactual analyses†," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(1), pages 20-50, February.
    6. Ganserer, Angelika & Gregory, Terry & Zierahn, Ulrich, 2022. "Minimum wages and the rise in solo self-employment," ZEW Discussion Papers 22-024, ZEW - Leibniz Centre for European Economic Research.
    7. Hu, Arthur & Hu, Xingwei & Tong, Hui, 2022. "Globalization? Trade war? A counterbalance perspective," MPRA Paper 114871, University Library of Munich, Germany.
    8. Bo Xiong, 2017. "The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 575-586, October.
    9. Ahn,Jaebin & Choi,Jaerim & Chung,Sunghoon, 2022. "Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad," Policy Research Working Paper Series 10114, The World Bank.

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    More about this item

    Keywords

    China Tire Safeguard; Temporary Trade Barriers; Trade Diversion Synthetic Control Method;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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