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up all three channels (i.e., downstream, Overall, this research further found that college
upstream, as well as direct competition effects) educated workers tended to see a faster wage
in both manufacturing and non-manufacturing growth (7.2% a year), while non-college educated
sectors, the average total effect of trading with workers saw a decline (4.3% a year).
China is a net job increase of 1.27% a year.
Supply chain offers new perspective. By
Stated differently, this study highlights how explicitly applying a supply chain perspective,
the negative effects of direct competition researchers found that the U.S. labor market
induced by the rise of China’s imports on primarily added jobs and saw higher wages from
U.S. employment and wages is largely limited trading with China. Many factors affect the U.S.
to a subset of U.S. manufacturing firms. By labor market besides international trade —
comparison, downstream exposure benefits all including technological and regulatory changes
sectors of the U.S. economy, including service — and can lead to job and wage losses. This
sectors, which comprise a much larger part of new study highlights how trading with China
the U.S. economy. did not precipitate but, in fact, helped to
mitigate the aggregate losses that may have
Real wage gains. In addition to employment come from other factors.
gains, the researchers also found that 75%
of U.S. workers, on average, experienced real Effect of the China trade shock on U.S. wage distribution:
wage growth from trade with China. When the three channels
supply chain perspective was applied to analyze
this issue, the downstream channel produced
increases in average real wages of 8.5% a year,
whereas the upstream channel produced an
average wage reduction of 4.1% a year, and the
impact of the direct channel is not significant.
The research team found that trading with China
boosted aggregate wage growth in the U.S. by
approximately 4.9% a year from 2000 to 2007.
SOUTH CHINA BUSINESS JOURNAL 32
upstream, as well as direct competition effects) educated workers tended to see a faster wage
in both manufacturing and non-manufacturing growth (7.2% a year), while non-college educated
sectors, the average total effect of trading with workers saw a decline (4.3% a year).
China is a net job increase of 1.27% a year.
Supply chain offers new perspective. By
Stated differently, this study highlights how explicitly applying a supply chain perspective,
the negative effects of direct competition researchers found that the U.S. labor market
induced by the rise of China’s imports on primarily added jobs and saw higher wages from
U.S. employment and wages is largely limited trading with China. Many factors affect the U.S.
to a subset of U.S. manufacturing firms. By labor market besides international trade —
comparison, downstream exposure benefits all including technological and regulatory changes
sectors of the U.S. economy, including service — and can lead to job and wage losses. This
sectors, which comprise a much larger part of new study highlights how trading with China
the U.S. economy. did not precipitate but, in fact, helped to
mitigate the aggregate losses that may have
Real wage gains. In addition to employment come from other factors.
gains, the researchers also found that 75%
of U.S. workers, on average, experienced real Effect of the China trade shock on U.S. wage distribution:
wage growth from trade with China. When the three channels
supply chain perspective was applied to analyze
this issue, the downstream channel produced
increases in average real wages of 8.5% a year,
whereas the upstream channel produced an
average wage reduction of 4.1% a year, and the
impact of the direct channel is not significant.
The research team found that trading with China
boosted aggregate wage growth in the U.S. by
approximately 4.9% a year from 2000 to 2007.
SOUTH CHINA BUSINESS JOURNAL 32
