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 H. Autor and D. Dorn and G. Hanson},
  journal={CEPR Discussion Paper Series},
  • David H. Autor, D. Dorn, G. Hanson
  • Published 2016
  • Economics
  • 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… CONTINUE READING
    501 Citations
    Export Shocks and Labor Markets: Evidence from the 1997 Asian Crisis
    The Low-Skilled Labor Market from 2002 to 2014: Measurement and Mechanisms
    The China Shock and Employment in Portuguese Firms
    • 3
    • PDF
    Global Economic Shocks, Local Economic Institutions, and Legislative Responses∗
    • 1
    • Highly Influenced
    • PDF


    International competition and labor market adjustment
    • 16
    • Highly Influential
    • PDF
    Made in China, Sold in Norway: Local Labor Market Effects of an Import Shock
    • 145
    • Highly Influential
    • PDF
    Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras
    • 1,595
    • PDF