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The Employment Consequences of Anti-Dumping Tariffs: Lessons from Brazil

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Abstract

Can anti-dumping tariffs increase employment? We compile data on all antidumping (AD) investigations in Brazil matching it to firm-level administrative employment information. Using difference-in-differences, we find that an AD tariff decreases imports and increases employment in the protected sector. Moreover, downstream firms decrease employment, while upstream ones are not affected. To quantify the aggregate effect of these tariffs, we build a model with international trade, input-output linkages, and labor force participation. We show that the Brazilian AD policy increased employment by 0.06%, but decreased welfare by 2.4%. Using tariffs, the government can increase employment by as much as 2.8%.

Suggested Citation

  • Gustavo de Souza & Haishi Li, 2022. "The Employment Consequences of Anti-Dumping Tariffs: Lessons from Brazil," Working Paper Series WP 2022-46, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:94915
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    File URL: https://www.chicagofed.org/-/media/publications/working-papers/2022/wp2022-46-pdf.pdf?sc_lang=en
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    More about this item

    Keywords

    Employment; Tariffs; Anti-Dumping; International Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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