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Trade-Induced Adoption of New Work

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  • Kim, Gueyon

    (University of California, Santa Cruz)

Abstract

I study the trade-induced restructuring process using a novel measure of new work that captures the firm's demand for jobs employing new knowledge, skills, and technologies. To construct measures of new work, I identify newly emerged job titles using word embedding models. Using both regional and firm-level analyses, I find that greater import exposure causes a persistent increase in new work in managerial occupations, but a decrease in new work in other occupations. Examining the activities performed in managerial new work, I find evidence of increased investments in post-production activities such as customer support, marketing, and sales. I further show that the trade-induced increase in managerial new work is driven by college-educated workers, thereby shedding light on the role of new work adoption in the distributional consequences of import shocks.

Suggested Citation

  • Kim, Gueyon, 2022. "Trade-Induced Adoption of New Work," IZA Discussion Papers 15165, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp15165
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    More about this item

    Keywords

    new work; trade adjustments; labor market inequality;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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