TY - RPRT AU - Autor, David AU - Dorn, David AU - Hanson, Gordon H. TI - The China Syndrome: Local Labor Market Effects of Import Competition in the United States PY - 2013/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7150 UR - https://www.iza.org/index.php/publications/dp7150 AB - 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. KW - import competition KW - trade flows KW - local labor markets KW - China ER -