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The Effects Of Trade With Developing Countries On The Regional Demand For Skill In The U.S.: Evidence From County Data

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  • Ivan T. Kandilov

Abstract

ABSTRACT Using county‐level data from the 1980s and 1990s and a county‐level trade measure that incorporates the county's industrial mix and patterns of international trade across industries, I provide new evidence that trade with developing countries raises the demand for skill and the skill premium in the U.S. Consistent with Heckscher–Ohlin, I find that trade driven by differences in factor endowments has an economically significant impact on local labor markets. The evidence suggests that when trade with developing countries rises, counties with higher skill endowment and greater employment in industries with larger trade shares experience greater relative demand for high‐skilled labor.

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  • Ivan T. Kandilov, 2009. "The Effects Of Trade With Developing Countries On The Regional Demand For Skill In The U.S.: Evidence From County Data," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 459-482, August.
    • Handle: RePEc:bla:jregsc:v:49:y:2009:i:3:p:459-482
    DOI: 10.1111/j.1467-9787.2008.00606.x
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    Cited by:

    1. Kandilov, Ivan T. & Richards, Hannah & Zhou, Xi & Yasar, Mahmut & Rejesus, Roderick M., 2022. "The Impact of Foreign Acquisitions on Employment, Output, and Wages in the U.S. Agrifood Industry," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322302, Agricultural and Applied Economics Association.
    2. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2017. "International trade and local labor markets: Do foreign and domestic shocks affect regions differently?," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 375-409.
    3. Jiaochen Liang & Stephan Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
    4. Stefano Federico, 2014. "Industry Dynamics and Competition from Low-Wage Countries: Evidence on Italy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(3), pages 389-410, June.
    5. Clément Malgouyres, 2017. "The Impact Of Chinese Import Competition On The Local Structure Of Employment And Wages: Evidence From France," Journal of Regional Science, Wiley Blackwell, vol. 57(3), pages 411-441, June.
    6. Jiaochen Liang & Stephan J. Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
    7. Partridge, Mark D. & Rickman, Dan & Olfert, M. Rose & Tan, Ying, 2013. "International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?," MPRA Paper 53407, University Library of Munich, Germany.

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