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The Effect of Import Competition on Wages in the Japanese Manufacturing Sector

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  • Masahiro Endoh

    (Keio University 2-15-45 Mita, Minato-ku Tokyo 108-8345, Japan and Columbia Business School 2M9 Uris Hall 3022 Broadway New York, NY 10027 Author email: endoh@fbc.keio.ac.jp Author email: me2631@columbia.edu)

Abstract

This study estimates the effect of import competition in the final goods market on workers’ wages in the Japanese manufacturing sector by constructing a panel of matched worker–firm data for 1998–2013 wages. The baseline results show that import competition does not decrease unskilled workers’ wages and increases the skill premia of workers with college degrees or those in managerial and professional positions. Large firms and firms with low productivity also increased their wage premia through import competition, but the degree of increase due to firm-level factors is much smaller than that due to factors related to workers’ skill.

Suggested Citation

  • Masahiro Endoh, 2018. "The Effect of Import Competition on Wages in the Japanese Manufacturing Sector," Asian Economic Papers, MIT Press, vol. 17(1), pages 46-67, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:17:y:2018:i:1:p:46-67
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    Cited by:

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    2. NI Bin & KATO Hayato & LIU Yang, 2020. "Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction," Discussion papers 20008, Research Institute of Economy, Trade and Industry (RIETI).
    3. Yoshihiko Hogen & Yojiro Ito & Kenji Kanai & Naoya Kishi, 2024. "Changes in the Global Economic Landscape and Issues for Japan's Economy," Bank of Japan Working Paper Series 24-E-3, Bank of Japan.
    4. Bin Ni & Hayato Kato & Yang Liu, 2023. "Does it matter where you invest? The impact of foreign direct investments on domestic job creation and destruction," The World Economy, Wiley Blackwell, vol. 46(1), pages 135-152, January.
    5. Galicia-Sanguino, Lucía & Rojo-Suárez, Javier & Alonso-Conde, Ana B. & López-Pérez, M. Victoria, 2021. "Trade integration and research and development investment as a proxy for idiosyncratic risk in the cross-section of stock returns," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    6. Endoh, Masahiro, 2021. "The effect of import competition on labor income inequality through firm and worker heterogeneity in the Japanese manufacturing sector," Japan and the World Economy, Elsevier, vol. 59(C).
    7. Masahiro Endoh, 2020. "Trade Effects on Wage Inequality through Worker and Firm Heterogeneity in Japan," Keio-IES Discussion Paper Series 2020-017, Institute for Economics Studies, Keio University.

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