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When Protectionism Kills Talent

Author

Listed:
  • Mehmet I. Canayaz
  • Isil Erel
  • Umit G. Gurun

Abstract

We examine the repercussions of protectionist policies implemented in the United States since 2018 on the composition of workforce and career choices within the semiconductor industry. We find that the shift towards protectionism, aimed at reviving domestic manufacturing and employment, paradoxically resulted in a significant drop in hiring domestic talent. The effect is stronger for entry-level and junior positions, indicating a disproportionate impact on newcomers to the workforce. Additionally, we trace the trajectories of undergraduate and graduate cohorts possessing chip-related skills over time, and document significant shifts away from the chip industry.

Suggested Citation

  • Mehmet I. Canayaz & Isil Erel & Umit G. Gurun, 2024. "When Protectionism Kills Talent," NBER Working Papers 32466, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32466
    Note: CF LS POL
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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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