TY - JOUR
T1 - Collateral damage?
T2 - Labour market effects of competing with China—at home and abroad
AU - Cabral, Sónia
AU - Martins, Pedro S.
AU - Pereira dos Santos, João
AU - Tavares, Mariana
N1 - Funding agencies#
European Union VS/2016/0340#
Fundação para a Ciência e Tecnologia#
PD/BD/128121/2016#
PY - 2021/4
Y1 - 2021/4
N2 - The increasing range and quality of China's exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labour market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employer–employee data of Portugal covering the period 1991–2008, indicate that workers’ earnings and employment are significantly negatively affected by China's competition, but only through the indirect ‘market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.
AB - The increasing range and quality of China's exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labour market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employer–employee data of Portugal covering the period 1991–2008, indicate that workers’ earnings and employment are significantly negatively affected by China's competition, but only through the indirect ‘market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.
UR - http://www.scopus.com/inward/record.url?scp=85096842399&partnerID=8YFLogxK
U2 - 10.1111/ecca.12355
DO - 10.1111/ecca.12355
M3 - Article
AN - SCOPUS:85096842399
SN - 0013-0427
VL - 88
SP - 570
EP - 600
JO - Economica
JF - Economica
IS - 350
ER -