%0 Report %A Autor, David %A Dorn, David %A Hanson, Gordon H. %T The China Syndrome: Local Labor Market Effects of Import Competition in the United States %D 2013 %8 2013 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 7150 %U https://www.iza.org/index.php/publications/dp7150 %X We analyze the effect of rising Chinese import competition between 1990 and 2007 on U.S. local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization and instrumenting for U.S. imports using changes in Chinese imports by other high-income countries. Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house import-competing manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in U.S. manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets. %K import competition %K trade flows %K local labor markets %K China