ABSTRACT

Import competition has heterogenous impacts across occupations. This paper estimates the effects of import exposure from China on employment in U.S. occupations from 2002 to 2014. After obtaining occupation-specific measures of Chinese import exposure and sorting occupations in tertiles from low to high wage, from routine to non-routine, and from low to high education, we find that Chinese import competition reduces employment in lower-indexed occupations under each sorting criteria. The employment reduction in the lowest tertile of occupations occurs in Chinese-trade exposed and unexposed sectors, which suggests the existence of local labor market effects in the presence of a strong regional concentration of lower-indexed occupations.