abstract: 'China''s emergence as a great economic power has induced an epochal shift

  in patterns of world trade. Simultaneously, it has challenged much of

  the received empirical wisdom about how labor markets adjust to trade

  shocks. Alongside the heralded consumer benefits of expanded trade are

  substantial adjustment costs and distributional consequences. These

  impacts are most visible in the local labor markets in which the

  industries exposed to foreign competition are concentrated. Adjustment

  in local labor markets is remarkably slow, with wages and labor-force

  participation rates remaining depressed and unemployment rates remaining

  elevated for at least a full decade after the China trade shock

  commences. Exposed workers experience greater job churning and reduced

  lifetime income. At the national level, employment has fallen in the US

  industries more exposed to import competition, as expected, but

  offsetting employment gains in other industries have yet to materialize.

  Better understanding when and where trade is costly, and how and why it

  may be beneficial, is a key item on the research agenda for trade and

  labor economists.'
affiliation: 'Autor, DH (Corresponding Author), MIT, Dept Econ, Cambridge, MA 02142
  USA.

  Autor, DH (Corresponding Author), Natl Bur Econ Res, Cambridge, MA 02138 USA.

  Autor, David H., MIT, Dept Econ, Cambridge, MA 02142 USA.

  Autor, David H., Natl Bur Econ Res, Cambridge, MA 02138 USA.

  Dorn, David, Univ Zurich, Dept Econ, CH-8001 Zurich, Switzerland.

  Dorn, David, Ctr Econ \& Policy Res, London EC1V 0DX, England.

  Hanson, Gordon H., Univ Calif San Diego, Sch Global Policy \& Strategy, La Jolla,
  CA 92093 USA.'
author: Autor, David H. and Dorn, David and Hanson, Gordon H.
author-email: 'dautor@mit.edu

  david.dorn@econ.uzh.ch

  gohanson@ucsd.edu'
author_list:
- family: Autor
  given: David H.
- family: Dorn
  given: David
- family: Hanson
  given: Gordon H.
booktitle: ANNUAL REVIEW OF ECONOMICS, VOL 8
da: '2023-09-28'
doi: 10.1146/annurev-economics-080315-015041
editor: Aghion, P and Rey, H
esi-highly-cited-paper: Y
esi-hot-paper: N
files: []
isbn: 978-0-8243-4608-9
issn: 1941-1383
keywords: globalization; labor-market adjustment; local labor markets; inequality
keywords-plus: 'LOW-WAGE COUNTRIES; IMPORT COMPETITION; UNITED-STATES;

  TECHNOLOGICAL-CHANGE; INDUSTRY DYNAMICS; GLOBAL ECONOMY; IMPACT;

  INEQUALITY; GROWTH; LIBERALIZATION'
language: English
number-of-cited-references: '113'
orcid-numbers: Dorn, David/0000-0002-1827-4734
pages: 205-240
papis_id: 92870a7a35a2c1a431a70d4fd4b01995
ref: Autor2016chinashock
series: Annual Review of Economics
times-cited: '389'
title: 'The China Shock: Learning from Labor-Market Adjustment to Large Changes in
  Trade'
type: Article; Book Chapter
unique-id: WOS:000389577500008
usage-count-last-180-days: '18'
usage-count-since-2013: '207'
volume: '8'
web-of-science-categories: Economics
year: '2016'