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"Import Competition and the Great US Employment Sag of the 2000s"

by Acemoglu, Daron; Autor, David; Dorn, David; Hanson, Gordon H; Price, Brendan (2016)

Abstract

Even before the Great Recession, US employment growth was unimpressive. Between 2000 and 2007, the economy gave back the considerable employment gains achieved during the 1990s, with a historic contraction in manufacturing employment being a prime contributor to the slump. We estimate that import competition from China, which surged after 2000, was a major force behind both recent reductions in US manufacturing employment and?through input-output linkages and other general equilibrium channels?weak overall US job growth. Our central estimates suggest job losses from rising Chinese import competition over 1999?2011 in the range of 2.0?2.4 million.

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