Costs and benefits of trade shocks: evidence from chilean local labor markets

Autores
César, Andrés Manuel; Falcone, Guillermo; Gasparini, Leonardo Carlos
Año de publicación
2022
Idioma
inglés
Tipo de recurso
documento de trabajo
Estado
versión enviada
Descripción
We study Chile’s labor market responses to trade shocks during 1996-2006, exploiting spatial and time variations in trade exposure arising from initial differences in industry specialization across local labor markets and the evolution of shocks across industries. We take advantage of China’s supply and demand’s worldwide shocks to instrument for Chinese import competition and demand for Chilean exports. Our main finding is that increasing manufacturing import competition implied a significant rise in labor informality in more exposed local markets, especially among young and unskilled workers. These groups also suffered significant relative wage losses. Meanwhile, locations that benefited most from the increased demand for primary products experienced a relative increase in employment, particularly among young individuals, and reallocation from self-employment towards salaried jobs in the formal sector, along with relative wage gains among old-age workers. Interestingly, these areas experienced a smaller increase in tertiary education enrollment rates than less exposed areas.
Centro de Estudios Distributivos, Laborales y Sociales
Materia
Ciencias Económicas
Trade Shocks
Local Labor Markets
Employment
Informality
Chile
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/139597

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network_name_str SEDICI (UNLP)
spelling Costs and benefits of trade shocks: evidence from chilean local labor marketsCésar, Andrés ManuelFalcone, GuillermoGasparini, Leonardo CarlosCiencias EconómicasTrade ShocksLocal Labor MarketsEmploymentInformalityChileWe study Chile’s labor market responses to trade shocks during 1996-2006, exploiting spatial and time variations in trade exposure arising from initial differences in industry specialization across local labor markets and the evolution of shocks across industries. We take advantage of China’s supply and demand’s worldwide shocks to instrument for Chinese import competition and demand for Chilean exports. Our main finding is that increasing manufacturing import competition implied a significant rise in labor informality in more exposed local markets, especially among young and unskilled workers. These groups also suffered significant relative wage losses. Meanwhile, locations that benefited most from the increased demand for primary products experienced a relative increase in employment, particularly among young individuals, and reallocation from self-employment towards salaried jobs in the formal sector, along with relative wage gains among old-age workers. Interestingly, these areas experienced a smaller increase in tertiary education enrollment rates than less exposed areas.Centro de Estudios Distributivos, Laborales y Sociales2022-07info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/139597enginfo:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas300.pdf?dl=0info:eu-repo/semantics/altIdentifier/issn/1853-0168info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/4.0/Creative Commons Attribution 4.0 International (CC BY 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-03T11:07:28Zoai:sedici.unlp.edu.ar:10915/139597Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-03 11:07:29.256SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Costs and benefits of trade shocks: evidence from chilean local labor markets
title Costs and benefits of trade shocks: evidence from chilean local labor markets
spellingShingle Costs and benefits of trade shocks: evidence from chilean local labor markets
César, Andrés Manuel
Ciencias Económicas
Trade Shocks
Local Labor Markets
Employment
Informality
Chile
title_short Costs and benefits of trade shocks: evidence from chilean local labor markets
title_full Costs and benefits of trade shocks: evidence from chilean local labor markets
title_fullStr Costs and benefits of trade shocks: evidence from chilean local labor markets
title_full_unstemmed Costs and benefits of trade shocks: evidence from chilean local labor markets
title_sort Costs and benefits of trade shocks: evidence from chilean local labor markets
dc.creator.none.fl_str_mv César, Andrés Manuel
Falcone, Guillermo
Gasparini, Leonardo Carlos
author César, Andrés Manuel
author_facet César, Andrés Manuel
Falcone, Guillermo
Gasparini, Leonardo Carlos
author_role author
author2 Falcone, Guillermo
Gasparini, Leonardo Carlos
author2_role author
author
dc.subject.none.fl_str_mv Ciencias Económicas
Trade Shocks
Local Labor Markets
Employment
Informality
Chile
topic Ciencias Económicas
Trade Shocks
Local Labor Markets
Employment
Informality
Chile
dc.description.none.fl_txt_mv We study Chile’s labor market responses to trade shocks during 1996-2006, exploiting spatial and time variations in trade exposure arising from initial differences in industry specialization across local labor markets and the evolution of shocks across industries. We take advantage of China’s supply and demand’s worldwide shocks to instrument for Chinese import competition and demand for Chilean exports. Our main finding is that increasing manufacturing import competition implied a significant rise in labor informality in more exposed local markets, especially among young and unskilled workers. These groups also suffered significant relative wage losses. Meanwhile, locations that benefited most from the increased demand for primary products experienced a relative increase in employment, particularly among young individuals, and reallocation from self-employment towards salaried jobs in the formal sector, along with relative wage gains among old-age workers. Interestingly, these areas experienced a smaller increase in tertiary education enrollment rates than less exposed areas.
Centro de Estudios Distributivos, Laborales y Sociales
description We study Chile’s labor market responses to trade shocks during 1996-2006, exploiting spatial and time variations in trade exposure arising from initial differences in industry specialization across local labor markets and the evolution of shocks across industries. We take advantage of China’s supply and demand’s worldwide shocks to instrument for Chinese import competition and demand for Chilean exports. Our main finding is that increasing manufacturing import competition implied a significant rise in labor informality in more exposed local markets, especially among young and unskilled workers. These groups also suffered significant relative wage losses. Meanwhile, locations that benefited most from the increased demand for primary products experienced a relative increase in employment, particularly among young individuals, and reallocation from self-employment towards salaried jobs in the formal sector, along with relative wage gains among old-age workers. Interestingly, these areas experienced a smaller increase in tertiary education enrollment rates than less exposed areas.
publishDate 2022
dc.date.none.fl_str_mv 2022-07
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Creative Commons Attribution 4.0 International (CC BY 4.0)
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