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IZA Discussion Paper No. 17656
January 2025
Employment Adjustments to Increased Imports: Evidence from a Developing Country

published online in: Contemporary Economic Policy, 15 March 2025

This paper examines the impact of imports from developed countries on industry-specific employment in India between 1983 and 2010. The identification strategy relies on comparing differential changes in import exposure across regions to the differential changes in employment within industries. The variation in the changes in imports to other developing countries is used to identify the component of the changes in imports driven by world demand. The results suggest that the increase in import exposure during the post-liberalization period reduced agricultural employment but increased employment in manufacturing, business, and social services. No significant impacts were found in the pre-liberalization period.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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