Trade shocks and social mobility: The intergenerational effect of import competition in Brazil

Arbeitspapier

This paper investigates whether the impact of trade shocks on employment and wages persists across generations. Using survey data with retrospective information on parental employment, we study the causal effect of increased Chinese import competition in Brazilian industries on individuals with differently exposed fathers. Results show that several years after the shock, children of more exposed fathers have lower education and earnings, lower chances of formal jobs, and are more likely to rely on social assistance. These effects are substantially stronger for children from disadvantaged background, indicating that the shock had a negative impact on intergenerational mobility.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 23-042

Classification and Topics

• Classification: Wirtschaft ; Education and Inequality ; Job, Occupational, and Intergenerational Mobility; Promotion ; Empirical Studies of Trade ; Trade and Labor Market Interactions ; Labor Demand
• Subject: Import competition ; Education ; Social Mobility ; Incomes ; Brazil

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): César, Andrés ; Ciaschi, Matías ; Falcone, Guillermo ; Neidhöfer, Guido
• Event: Veröffentlichung
• (who): ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
• (where): Mannheim
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/279786
• Last update: 10.03.2025, 11:42 AM CET