• Corpus ID: 13706498

Labor Market Conflict and the Decline of the Rust Belt

  title={Labor Market Conflict and the Decline of the Rust Belt},
  author={Simeon D. Alder and David Lagakos and Lee E. Ohanian},
No region of the United States fared worse over the postwar period than the “Rust Belt,” the heavy manufacturing region bordering the Great Lakes. This paper hypothesizes that the Rust Belt declined in large part due to the persistent labor market conflict which was prevalent throughout the Rust Belt’s main industries. We formalize this thesis in a two-region dynamic general equilibrium model in which labor market conflict leads to a hold-up problem in the Rust Belt that reduces investment and… 

Dynamic Spatial General Equilibrium

We incorporate forward-looking capital accumulation into a dynamic discrete choice model of migration. We characterize the existence and uniqueness of the steady-state equilibrium; generalize

Does Capital Bear the U.S. Corporate Tax after All? New Evidence from Corporate Tax Returns

  • Edward G. Fox
  • Economics, Business
    Journal of Empirical Legal Studies
  • 2020
This article uses U.S. corporate tax return data to assess how government revenue would have changed if, over the period 1957–2013, corporations had been subject to a hypothetical corporate cash flow

Su cient Statistics for Dynamic Spatial Economics∗

We model the dynamic response of the spatial economy to shocks to productivity, amenities, trade costs and migration costs in the presence of migration frictions and forward-looking capital

Location, Location, Location: Manufacturing and House Price Growth

Exploiting data on tens of millions of housing transactions, we show that (1) house prices grew by less in manufacturing-heavy US regions and (2) that this pattern is especially present for the

Do Universities Improve Local Economic Resilience?

We use a novel identification strategy to investigate whether regional universities make their local economies more resilient. Our strategy is based on state governments using similar



Did the Rust Belt Become Shiny? A Study of Cities and Counties That Lost Steel and Auto Jobs in the 1980s

HOW DO COUNTIES, CITIES, or regions respond to adverse economic shocks? How quickly does an area recover and through which adjustment mechanisms? These questions touch on many different areas of

The China Syndrome: Local Labor Market Effects of Import Competition in the United States

We analyze the effect of rising Chinese import competition between 1990 and 2007 on U.S. local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in

Regional Evolutions

IN 1987, the unemployment rate in Massachusetts averaged 3.2 percent, three percentage points below the national rate. Only four years later, in 1991, it stood at 9.0 percent, more than two points

Globalization and the Gains from Variety

Since the seminal work of Krugman (1979), product variety has played a central role in models of trade and growth. In spite of the general use of love-of-variety models, there has been no systematic

Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants

This paper empirically investigates the effects of trade liberalization on plant productivity in the case of Chile. Chile presents an interesting setting to study this relationship since it underwent

Competition, Markups, and the Gains from International Trade

We study product-level data for Taiwanese manufacturing establishments through the lens of a model with endogenously variable markups. We nd that the gains from international trade can be large: in

Exporting Jobs? The Impact of Import Competition on Employment and Wages in U. S. Manufacturing

This paper investigates the effect of increased import competition on U. S. manufacturing employment and wages, using data for a panel of manufacturing industries over the 1977–1987 period. The

Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, it and Productivity

We examine the impact of Chinese import competition on broad measures of technical change—patenting, IT, and TFP—using new panel data across twelve European countries from 1996 to 2007. In

The Analysis of Union Behavior