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To build a new development pattern in China, it is important to study the impact of import and export trade on its employment. We measured employment volatility and empirically analysed the impact of trade status and import and export intensity on the employment volatility of labour requiring different skill levels in A-share-listed industrial enterprises from 2003 to 2015. We found that firms engaging in import and export trade can significantly reduce employment volatility for both high- and low-skilled labour. Furthermore, differences were noted in the degree of impact on the two skill levels. The results indicate that an increase in export intensity does not reduce employment volatility in high-skilled labour. However, an increase in import intensity significantly reduces employment volatility in both high- and low-skilled labour. Moreover, export and import trade reduce employment volatility by reducing the volatility in firms’ output and wages and by promoting investment in research and development.

Do imports and exports exacerbate employment volatility? Evidence from Chinese A-share-listed industrial enterprises