Do imports from China really make a difference in U.S. labor markets? Economists David Autor, David Dorn, and Gordon Hanson examined detailed data on Chinese imports into local communities. Some local communities are more heavily impacted by Chinese imports than others depending on the mix of products produced locally. The authors found that the pace of Chinese import growth was so rapid from 1990 to 2007 that it often had a strong and negative effect on local economies.

Those communities that were more exposed to imports had larger increases in workers receiving unemployment insurance, food stamps, and disability payments.

These findings do not mean that trade with China was not ultimately beneficial. Displaced workers can find new jobs and import competition lowers prices for all consumers. But it does mean that the burden of adjustment to imports varies by region. Some regions will have a more difficult time adjusting than others to a sudden influx of imports. The study also does not measure the indirect benefits from trade with China. As the Chinese economy expanded during this period, it created more export opportunities for producers in the United States. Those benefits were not measured in this study.

Question.

What have been the local effects of Chinese imports?

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SC48 18 R MADE IN CHINA SCST SC57 SC04 JE