Arbeitspapier
Costs and benefits of trade shocks: Evidence from Chilean local labor markets
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: Documento de Trabajo ; No. 300
- Classification
-
Wirtschaft
Empirical Studies of Trade
Trade and Labor Market Interactions
Labor Demand
Wage Level and Structure; Wage Differentials
Industry Studies: Manufacturing: General
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Commodity Markets
Size and Spatial Distributions of Regional Economic Activity
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Subject
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Trade Shocks
Local Labor Markets
Employment
Informality
Chile
- Event
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Geistige Schöpfung
- (who)
-
César, Andrés
Falcone, Guillermo
Gasparini, Leonardo
- Event
-
Veröffentlichung
- (who)
-
Universidad Nacional de La Plata, Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)
- (where)
-
La Plata
- (when)
-
2022
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- César, Andrés
- Falcone, Guillermo
- Gasparini, Leonardo
- Universidad Nacional de La Plata, Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)
Time of origin
- 2022
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