Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180446 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11428
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We investigate the impacts of trade liberalization on household behaviors and outcomes in urban China, exploiting regional variation in the exposure to tariff cuts resulting from WTO entry. Regions that initially specialized in industries facing larger tariff cuts experienced relative declines in wages. Households responded to this income shock in several ways. First, household members worked more, especially in the non-tradable sector. Second, more young adults co-resided with their parents, and thus household size increased. Third, households saved less. These behaviors significantly buffered the negative wage shock induced by trade liberalization.
Subjects: 
household adjustments
trade liberalization
WTO
JEL: 
F14
F16
J20
R23
Document Type: 
Working Paper

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