Import competition and informal employment: empirical evidence from China
This paper investigates the effects of trade liberalisation induced labour demand shocks on informal employment in China. We employ a local labour market approach to construct a regional measure of exposure to import tariffs by exploiting initial differences in industrial composition across prefectu...
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| Main Authors: | , , |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Regensburg
Leibniz Institute for Eastern and Southeastern European Studies
September 2021
|
| Series: | IOS working papers
No. 392 |
| Online Access: | kostenfrei |
| Summary: | This paper investigates the effects of trade liberalisation induced labour demand shocks on informal employment in China. We employ a local labour market approach to construct a regional measure of exposure to import tariffs by exploiting initial differences in industrial composition across prefectural cities and then link it with the employment status of individuals. Using three waves of household survey data between 1995 and 2007, our results show that workers from regions that experienced a larger tariff cut were more likely to be employed informally. Further results based on firm-level data reveal a consistent pattern; tariff reductions increased the share of informal workers within firms. Such effects are more salient among smaller and less productive firms. Our findings suggest an important margin of labour market adjustment in response to trade shocks in developing countries, i.e. employment adjustment along the formal-informal dimension. |
| Physical Description: | 1 Online-Ressource (v, 58 Seiten) Diagramme |
| Format: | kostenfrei |
Staff View
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| spelling | Wang, Feicheng Verfasser (DE-588)1204943974 aut Import competition and informal employment empirical evidence from China Feicheng Wang, Zhe Liang, and Hartmut Lehmann Regensburg Leibniz Institute for Eastern and Southeastern European Studies September 2021 1 Online-Ressource (v, 58 Seiten) Diagramme txt rdacontent c rdamedia cr rdacarrier IOS working papers No. 392 This paper investigates the effects of trade liberalisation induced labour demand shocks on informal employment in China. We employ a local labour market approach to construct a regional measure of exposure to import tariffs by exploiting initial differences in industrial composition across prefectural cities and then link it with the employment status of individuals. Using three waves of household survey data between 1995 and 2007, our results show that workers from regions that experienced a larger tariff cut were more likely to be employed informally. Further results based on firm-level data reveal a consistent pattern; tariff reductions increased the share of informal workers within firms. Such effects are more salient among smaller and less productive firms. Our findings suggest an important margin of labour market adjustment in response to trade shocks in developing countries, i.e. employment adjustment along the formal-informal dimension. kostenfrei Langzeitarchivierung durch die Bayerische Staatsbibliothek Liang, Zhe (DE-588)138789908 aut Lehmann, Hartmut (DE-588)124968848 aut IOS working papers No. 392 (DE-604)BV040033175 392 http://www.dokumente.ios-regensburg.de/publikationen/wp/wp_392.pdf Verlag kostenfrei |
| spellingShingle | Wang, Feicheng Liang, Zhe Lehmann, Hartmut Import competition and informal employment empirical evidence from China IOS working papers |
| title | Import competition and informal employment empirical evidence from China |
| title_auth | Import competition and informal employment empirical evidence from China |
| title_exact_search | Import competition and informal employment empirical evidence from China |
| title_exact_search_txtP | Import competition and informal employment empirical evidence from China |
| title_full | Import competition and informal employment empirical evidence from China Feicheng Wang, Zhe Liang, and Hartmut Lehmann |
| title_fullStr | Import competition and informal employment empirical evidence from China Feicheng Wang, Zhe Liang, and Hartmut Lehmann |
| title_full_unstemmed | Import competition and informal employment empirical evidence from China Feicheng Wang, Zhe Liang, and Hartmut Lehmann |
| title_short | Import competition and informal employment |
| title_sort | import competition and informal employment empirical evidence from china |
| title_sub | empirical evidence from China |
| url | http://www.dokumente.ios-regensburg.de/publikationen/wp/wp_392.pdf |
| volume_link | (DE-604)BV040033175 |
| work_keys_str_mv | AT wangfeicheng importcompetitionandinformalemploymentempiricalevidencefromchina AT liangzhe importcompetitionandinformalemploymentempiricalevidencefromchina AT lehmannhartmut importcompetitionandinformalemploymentempiricalevidencefromchina |