The heterogeneous effects of trade across occupations: A test of the Stolper-Samuelson Theorem

Arbeitspapier

This paper develops and implements a novel test of the Stolper-Samuelson theorem. We use nationally-representative matched employer-employee panel data from 1997 through 2015 to study the effect of the rise in China's exports on French worker earnings. Our version of the Stolper-Samuelson theorem states that there is a negative correlation between occupation exposure to Chinese competition and change in worker earnings. First, we document substantial heterogeneity in trade adjustment across occupations. Then, consistent with the Stolper-Samuelson prediction, we show that workers initially employed in occupations more intensively used in hard-hit industries experience larger declines in earnings. We also show that workers tend to move out of hard-hit industries, but they tend to remain in their initial occupation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2020-24

Classification and Topics

• Classification: Wirtschaft ; Neoclassical Models of Trade ; Empirical Studies of Trade ; Trade and Labor Market Interactions
• Subject: Faktorpreisausgleich ; Import ; Chinesisch ; Arbeitsmarkt ; Lohn ; Frankreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Basco, Sergi ; Liégey, Maxime ; Mestieri, Martí ; Smagghue, Gabriel
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Chicago
• (where): Chicago, IL
• (when): 2020

Further information

• DOI: doi:10.21033/wp-2020-24
• Handle: http://hdl.handle.net/10419/244238
• Last update: 10.03.2025, 11:42 AM CET