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Impacts of Increased Chinese Imports on Japan's Labor Market

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  • HAYAKAWA Kazunobu
  • ITO Tadashi
  • URATA Shujiro

Abstract

Using Japanese firm/establishment level census data, we investigate the impact of Chinese import penetration on employment in Japan. We found negative impacts of Chinese import penetration on total employment, especially for industries that produce competing products to Chinese imports, and a positive impact of import penetration in the industries from which firms purchase their inputs (upstream import penetration). The negative impacts are mainly driven by firms' exit from the market while positive impacts are enjoyed by surviving firms. We did not find any significant impacts of the penetration in industries to which firms sell their products (downstream penetration).

Suggested Citation

  • HAYAKAWA Kazunobu & ITO Tadashi & URATA Shujiro, 2019. "Impacts of Increased Chinese Imports on Japan's Labor Market," Discussion papers 19098, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:19098
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    Cited by:

    1. Kazunobu Hayakawa & Tadashi Ito & Shujiro Urata, 2021. "Labor Market Impacts of Import Penetration from China and Regional Trade Agreement Partners: The Case of Japan," The Developing Economies, Institute of Developing Economies, vol. 59(3), pages 306-323, September.
    2. Higo, Masahiro, 2023. "What caused the downward trend in Japan’s labor share?," Japan and the World Economy, Elsevier, vol. 67(C).
    3. Endoh, Masahiro, 2023. "The China shock and job reallocation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    4. ITO Tadashi & MATSUURA Toshiyuki, 2022. "China shock on Japanese firms: Firms’ differential reactions to the increase in Chinese imports," Discussion papers 22036, Research Institute of Economy, Trade and Industry (RIETI).
    5. Zhuhua Jiang & Chizheng Miao & Jose Arreola Hernandez & Seong-Min Yoon, 2022. "Effect of Increasing Import Competition from China on the Local Labor Market: Evidence from Sweden," Sustainability, MDPI, vol. 14(5), pages 1-18, February.

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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