The impact of the Chinese import shock on Finnish regional labor markets
Keywords:globalization, import competition, labor market, manufacturing employment
The rapid rise of Chinese exports over the past few decades has raised concerns about manufacturing jobs and internal labor market outcomes in high-income countries. I analyze the effect of rising Chinese import competition on Finnish regional manufacturing employment between 1995 and 2007. The analysis exploits the cross-regional variation in initial industry structures and uses Chinese imports to other high-income countries as an instrument for Chinese imports to Finland. I find that rising Chinese import competition has a negative effect on the share of manufacturing employment in Finnish sub-regions.
Copyright (c) 2023 Veera Holappa
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