The China Syndrome¶
Autor, D. H., Dorn, D., & Hanson, G. H. (2013). The China Syndrome: Local Labor Market Effects of Import Competition in the United States. American Economic Review, 103(6), 2121-2168.
Cited by¶
2 citations across 2 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Comparative Advantage
- However, this ignores transition costs: workers displaced from import-competing sectors may face prolonged unemployment, retraining costs, and permanently reduced lifetime earnings.
This sourceShows that rising Chinese import competition caused persistent local-labor-market employment declines, wage losses, and rising transfer payments; supports the prime's T6 adjustment-cost / transition-pain claim.
Supported in partVerified against the work's full text
Shows import competition raised unemployment and lowered wages in exposed US local labor markets, with slow adjustment; it does not measure retraining costs or permanent lifetime earnings losses.
“Rising exposure increases unemployment, lowers labor force participation, and reduces wages in local labor markets.”
- However, this ignores transition costs: workers displaced from import-competing sectors may face prolonged unemployment, retraining costs, and permanently reduced lifetime earnings.
- Gains from Trade
- T1: Aggregate Welfare vs Distributional Losers. (As Autor, Dorn, and Hanson (2013) document empirically, aggregate gains coexist with localized labor-market losses requiring adjustment assistance.)
This sourceEmpirically shows trade exposure causes persistent local employment declines, wage losses, and rising transfer payments; directly supports the T1 claim that aggregate gains coexist with localized labor-market losses requiring adjustment assistance.
Supported in partVerified against the work's full text
The paper documents localized labor-market losses and rising transfers from import competition, but treats aggregate gains as a theoretical expectation, not an empirical finding.
“Theory suggests that trade with China yields aggregate gains for the U.S. economy.”
- T1: Aggregate Welfare vs Distributional Losers. (As Autor, Dorn, and Hanson (2013) document empirically, aggregate gains coexist with localized labor-market losses requiring adjustment assistance.)
Verification¶
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