Year: 2017
Type: report
Abstract: We develop a multi-sector gravity model with heterogeneous workers to quantify the aggregate and group-level welfare effects of trade.We estimate the model using the structural relationship between China-shock driven changes in manufacturing employment and average earnings across US groups defined by commuting zone and education.We find that the China shock increases average welfare but some groups experience losses as high as five times the average gain.Adjusted for plausible measures of inequality aversion, gains in social welfare are positive and only slightly lower than with the standard aggregation.
DOI: 10.3386/w23737
Authors: Simon Galle, Andrés Rodríguez-Clare, Moises Yi
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
Funder: National Science Foundation
OpenAlex ID: W2358076756