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Labor market effects of import competition: Theory and evidence from the textile and apparel industries

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Abstract

Since the early 1980s, much attention has been given to the possibility of trade-related job losses and wage effects in the textile and apparel industries. This paper uses aggregate time series data from the Annual Survey of Manufacturers [Bartlesman and Gray, 1996] with import price data from the Bureau of Labor Statistics [Alterman, 1991] for 1977–91 to test the effect of imports on employment and wages in textiles and apparel. Theoretical models suggest that import competition should be a factor in the determination of employment, and possibly wages, regardless of whether the U.S. is represented as a price-setter or price-taker. The empirical analysis provides some support.

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References

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Authors and Affiliations

  1. Mercer University, U.S.A.

    Ben S. Shippen Jr.

Authors
  1. Ben S. Shippen Jr.
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Additional information

The author appreciates the helpful comments of Barry T. Hirsch, participants at the Georgia Southern University economics seminar in November 1997, and the editorial assistance of a reviewer for theAtlantic Economic Journal.

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Shippen, B.S. Labor market effects of import competition: Theory and evidence from the textile and apparel industries. Atlantic Economic Journal 27, 193–200 (1999). https://doi.org/10.1007/BF02300238

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  • DOI: https://doi.org/10.1007/BF02300238

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