The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade

  title={The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade},
  author={David Autor and David Dorn and Gordon H. Hanson},
  journal={CEPR Discussion Paper Series},
China’s emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has toppled much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside its heralded consumer benefits, trade has both significant distributional costs, which theory has long recognized, and substantial adjustment costs, which the literature has tended to downplay. These adjustment costs mean that trade impacts are most visible not in… 

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