Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys

The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.

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Bibliographic Details
Main Authors: Ebenstein, Avraham, Harrison, Ann, McMillan, Margaret, Phillips, Shannon
Language:English
Published: 2011-08-01
Subjects:AFFECTED WORKERS, AGGREGATE EMPLOYMENT, AGRICULTURE, BUSINESS CYCLE, CELL PHONE, CELL PHONES, COMMERCE, COMPUTER TECHNOLOGY, COMPUTERS, CONFIDENTIAL DATA, CONSUMER PRICE INDEX, DECLINING WAGES, DEMOGRAPHIC, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISPLACED WORKERS, DOMESTIC WORKERS, DOWNWARD PRESSURE, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC RESEARCH, EDUCATIONAL ATTAINMENT, EFFICIENCY WAGES, EMPLOYMENT, EMPLOYMENT TRENDS, EXCHANGE RATE, EXCHANGE RATE FLUCTUATIONS, EXOGENOUS SHOCK, EXOGENOUS VARIABLES, EXPORT GROWTH, EXPORTS, EXPOSURE, FOREIGN COMPETITION, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN LABOR, GENERAL EQUILIBRIUM, GLOBAL ECONOMY, GLOBALIZATION, GROUP WORKERS, HIGH WAGE, HIGH WAGES, HOURLY WAGE, HOURLY WAGES, HUMAN CAPITAL, INCOME, INCOME INEQUALITY, INDUSTRY WAGE, INSTITUTION, INTERNATIONAL COMPETITION, INTERNATIONAL TRADE, IP, JOBS, JOBS CREATION, LABOR DEMAND, LABOR FORCE, LABOR MARKET, LABOR MARKET OUTCOMES, LABOR STATISTICS, LABOR SUPPLY, LOW-INCOME COUNTRIES, LOW-INCOME COUNTRY, MANAGERIAL SKILLS, MANUFACTURING, MANUFACTURING INDUSTRIES, MATHEMATICS, MISSING VALUES, MORTALITY, MOTIVATION, OCCUPATION, OCCUPATIONAL MOBILITY, OCCUPATIONS, OLDER WORKERS, OPEN ACCESS, OUTSOURCING, POLITICAL ECONOMY, POSITIVE EFFECTS, PRESENT EVIDENCE, PREVIOUS RESULTS, PREVIOUS STUDIES, PREVIOUS WORK, PRICE SERIES, PRODUCT MARKET, PRODUCT PRICE, PRODUCT PRICES, PRODUCTION WAGES, PRODUCTION WORKERS, PRODUCTIVE FIRMS, PRODUCTIVITY GAINS, PRODUCTIVITY GROWTH, PRODUCTIVITY IMPROVEMENTS, PRODUCTIVITY LEVEL, REAL WAGE, REAL WAGES, RENTS, RESULT, SALARIED WORKERS, SERVICE EMPLOYMENT, SERVICE SECTOR, SERVICE SECTORS, SKILL GROUPS, SKILLED WORKERS, TECHNOLOGICAL CHANGE, TECHNOLOGICAL CHANGES, TECHNOLOGY INVESTMENTS, TELEPHONE, TELEPHONE CONNECTIONS, TELEPHONES, TIME PERIOD, TIME PERIODS, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, TOTAL OUTPUT, TRADE LIBERALIZATION, TRADE POLICY, TRADE REFORMS, UNIQUE IDENTIFIERS, UNSKILLED LABOR, UNSKILLED WORKERS, VOLATILITY, WAGE ADJUSTMENT, WAGE DETERMINATION, WAGE DIFFERENTIALS, WAGE DISTRIBUTION, WAGE EFFECTS, WAGE EMPLOYMENT, WAGE IMPACT, WAGE INEQUALITY, WAGE LOSS, WAGE LOSSES, WAGE PREMIUM, WAGE PREMIUMS, WAGE RATE, WAGE STRUCTURE, WEB, WORKER, WORKERS, YOUNGER WORKERS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110803101557
https://hdl.handle.net/10986/3512
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Summary:The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.