Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys | Zendy

Avraham Ebenstein | Zendy; Ann Harrison | Zendy; Margaret McMillan | Zendy; Shan Phillips | Zendy

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Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys

Author(s) -

Avraham Ebenstein,

Ann Harrison,

Margaret McMillan,

Shan Phillips

Publication year - 2013

Publication title -

the review of economics and statistics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.999

H-Index - 165

eISSN - 1530-9142

pISSN - 0034-6535

DOI - 10.1162/rest_a_00400

Subject(s) - offshoring , current population survey , globalization , wage , panel data , labour economics , economics , population , low wage , demographic economics , business , outsourcing , econometrics , demography , marketing , market economy , sociology

We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure to globalization is associated with significant wage effects, while industry exposure has no significant impact. We present evidence that globalization has put downward pressure on worker wages through the reallocation of workers away from higher-wage manufacturing jobs into other sectors and other occupations. Using a panel of workers, we find that occupation switching due to trade led to real wage losses of 12 to 17 percentage points.

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