Untangling Trade and Technology: Evidence from Local Labor Markets
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 nonmanufacturing 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.
Dorn acknowledges funding from the Spanish Ministry of Science and Innovation (CSD2006-00016 and ECO2010-16726). Autor and Hanson acknowledge funding from the National Science Foundation (grant SES-1227334). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Untangling Trade and Technology: Evidence from Local Labour Markets David H. Autor1,*, David Dorn2 andGordon H. Hanson3 The Economic Journal Volume 125, Issue 584, pages 621–646, May 2015 citation courtesy of