Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279079 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16381
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We employ employer-employee matched data from Denmark and utilize plausibly exogenous variation in the rise of import competition due to the dismantling of import quotas as China entered the World Trade Organization to show, first, that rising import competition has led to reduced employment in mid-wage occupations compensated by an increased likelihood of employment in both low-wage and high-wage occupations. Workers with higher education are more likely to move from mid- to high-wage occupations due to trade compared to moving from mid- to low-wage occupations. Employing task content information of detailed occupations, we also show that workers performing manual tasks are the ones most affected by import competition independently of the routine-task intensity of occupations. This implies that the effect of import competition is distinct from that of routine task-replacing technological change
Subjects: 
job polarization
employer-employee matched data
import competition
job trajectories of individual workers
trade
technology
task
China
Denmark
JEL: 
F14
F16
F66
J23
J24
J62
Document Type: 
Working Paper

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