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Import Competition and Manufacturing Employment in Japan

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  • Hitoshi Sasaki

    (Bank of Japan)

Abstract

This paper investigates the effects of increased import competition on Japanese manufacturing employment at the four-digit industry level from the mid 1990s to the early 2000s. The estimation results of a labor demand equation indicate that decreases in import prices are closely related to the decline in employment in labor-intensive industries exposed to severe import competition. This suggests that import competition is a key factor in explaining the harsh employment situation observed in the Japanese manufacturing sector since the mid 1990s.

Suggested Citation

  • Hitoshi Sasaki, 2007. "Import Competition and Manufacturing Employment in Japan," Bank of Japan Working Paper Series 07-E-25, Bank of Japan.
    • Handle: RePEc:boj:bojwps:07-e-25
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    File URL: http://www.boj.or.jp/en/research/wps_rev/wps_2007/data/wp07e25.pdf
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    References listed on IDEAS

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    Cited by:

    1. Akira Sasahara, 2022. "The Empirics of the China Trade Shock: A Summary of Estimation Methods and A Literature Review," Keio-IES Discussion Paper Series 2022-008, Institute for Economics Studies, Keio University.
    2. Taniguchi, Mina, 2019. "The effect of an increase in imports from China on local labor markets in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 1-18.
    3. 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).

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    More about this item

    Keywords

    import competition; import prices; labor demand equation; import-competing industries;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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