Management Papers

Document Type

Journal Article

Date of this Version

10-2014

Publication Source

The Review of Economics and Statistics

Volume

96

Issue

4

Start Page

581

Last Page

595

DOI

10.1162/REST_a_00400

Abstract

We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure to globalization is associated with significant wage effects, while industry exposure has no significant impact. We present evidence that globalization has put downward pressure on worker wages through the reallocation of workers away from higher-wage manufacturing jobs into other sectors and other occupations. Using a panel of workers, we find that occupation switching due to trade led to real wage losses of 12 to 17 percentage points.

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Date Posted: 27 November 2017

This document has been peer reviewed.