Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys
We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure to globalization is associated with significant wage effects, while industry exposure has no significant impact. We present evidence that globalization has put downward pressure on worker wages through the reallocation of workers away from higher wage manufacturing jobs into other sectors and other occupations. Using a panel of workers, we find that occupation switching due to trade led to real wage losses of 12 to 17 percentage points.
We would like to thank the editor, two anonymous referees, Rajeev Dehejia, Gene Grossman, James Harrigan and John McLaren for helpful comments on earlier versions of the manuscript. We also thank seminar participants at the University of Maryland, the University of Virginia and Yale University for helpful comments. Special thanks to David Autor, Robert Feenstra, Wayne Gray, and Lawrence Edwards for providing data critical to our analysis. Excellent research assistance was provided by Catherine Almirall, Revital Bar, Joan Fang, and Michael Freedman. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Avraham Ebenstein & Ann Harrison & Margaret McMillan & Shannon Phillips, 2014. "Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 581-595, October. citation courtesy of