Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223246 
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper No. 645
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
The increasing range and quality of China’s exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labour market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employeremployee data of Portugal covering the 1991-2008 period, indicate that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.
Subjects: 
International trade
Labour market
Matched employer-employee data
China
Import competition
JEL: 
F14
F16
F66
J31
Document Type: 
Working Paper

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