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TRADE, TRAINING, EMPLOYMENT, AND WAGES: EVIDENCE FROM THE
U.S. MANUFACTURING INDUSTRY
by
Hao-Chung Li
A Dissertation Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Ful
llment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
(ECONOMICS)
August 2010
Copyright 2010 Hao-Chung Li
Object Description
| Title | Trade, training, employment, and wages: evidence from the U.S. manufacturing industry |
| Author | Li, Hao-Chung |
| Author email | haochunl@usc.edu; haochunl@usc.edu |
| Degree | Doctor of Philosophy |
| Document type | Dissertation |
| Degree program | Economics |
| School | College of Letters, Arts and Sciences |
| Date defended/completed | 2010-05-03 |
| Date submitted | 2010 |
| Restricted until | Unrestricted |
| Date published | 2010-05-25 |
| Advisor (committee chair) |
Ham, John Dekle, Robert |
| Advisor (committee member) |
Strauss, John Painter, Gary |
| Abstract | In this dissertation, I analyze the effects of trade on the U.S. domestic labor market. I extend the current literature in two dimensions. First, I investigate the effect of import competition on company training within United States manufacturing industries. Second, I extend Freeman and Katz's (1991) and Kletzer's (2002) studies on the employment and wage effects of trade through the year 2001.; My focus on the effects of imports on company training is new to the literature, and it is also important as such training is an important factor in earnings and job security. Specifically, I look at the effect of imports on the incidence of company training for individuals in the National Longitudinal Survey of Youth. Overall, I find that import competition has a negative effect on company training. I also find that imports from low- and middle- income countries have a more severe negative effect on training than do those from high-income countries. However, I do not find a significant difference between the effect of imports in high-technology and low-technology industries. Finally, I find that the final goods imports in an industry have a more negative effect on training than the intermediate goods imports in the industry. Thus it is not surprising there is pressure to limit import competition, especially from low- or middle- income countries, since reduced training opportunities for U.S. workers can be perceived as reducing "good jobs."; My research on company training suggests that nonproduction workers bear the brunt of this negative effect on training, while the effect on production workers is insignificant. In my chapter on the employment and wage effects of trade, I demonstrate that the results in my training study do not tell the full story. Typically, production workers might suffer lower employment and wage levels when faced with import competition. On the other hand, rising demand for exports, through their effect on mounting domestic product demand, is associated with increases in industry employment and wage levels for both production and nonproduction workers. This suggests that when we discuss the effect of trade on employment and wages, we should not overlook the positive effect that arises from increasing foreign demand.; The effect of trade on the U.S. labor market is of great importance given the continuing rise in trade in both the manufacturing and service sectors. My dissertation suggests that workers could potentially bear greater costs in the face of increased globalization. How to mitigate these potential negative effects is a crucial policy question. |
| Keyword | import competition; trade; company training; employment; wage |
| Geographic subject (country) | USA |
| Coverage date | 1988/1996; 1979/2001 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m3099 |
| Rights | Li, Hao-Chung |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | http://www.usc.edu/isd/libraries/services/ask_a_librarian/email/ |
| Filename | etd-Li-3767 |
| Archival file | uscthesesreloadpub_Volume44/etd-Li-3767.pdf |
Description
| Title | Page 1 |
| Full text | TRADE, TRAINING, EMPLOYMENT, AND WAGES: EVIDENCE FROM THE U.S. MANUFACTURING INDUSTRY by Hao-Chung Li A Dissertation Presented to the FACULTY OF THE USC GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Ful llment of the Requirements for the Degree DOCTOR OF PHILOSOPHY (ECONOMICS) August 2010 Copyright 2010 Hao-Chung Li |
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