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Trade Shocks and Social Mobility: The Intergenerational Effect of Import Competition in Brazil

Author

Listed:
  • Andrés César

    (CEDLAS-IIE-FCE-UNLP & CONICET)

  • Matías Ciaschi

    (CEDLAS-IIE-FCE-UNLP & CONICET)

  • Guillermo Falcone

    (CEDLAS-IIE-FCE-UNLP & CONICET)

  • Guido Neidhöfer

    (ZEW Mannheim)

Abstract

This paper investigates whether the impact of trade shocks on employment and wages persists across generations. Using survey data with retrospective information on parental employment and instrumental variables, we study the effect of increased Chinese import competition in Brazilian industries on individuals with differently exposed fathers. Results show that several years after the shock, children of more exposed fathers have lower education and earnings, lower chances of formal jobs, and are more likely to rely on social assistance. These effects are substantially stronger for children from disadvantaged background, indicating that the shock had a negative impact on intergenerational mobility.

Suggested Citation

  • Andrés César & Matías Ciaschi & Guillermo Falcone & Guido Neidhöfer, 2023. "Trade Shocks and Social Mobility: The Intergenerational Effect of Import Competition in Brazil," CEDLAS, Working Papers 0316, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0316
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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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