Full Citation
Title: Import Competition and the Decline in U.S. Entrepreneurship
Citation Type: Journal Article
Publication Year: 2017
ISBN:
ISSN: 1556-5068
DOI: http://dx.doi.org/10.2139/ssrn.3056827
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Abstract: We theoretically and empirically analyze whether the rise in globalization and trade integration of product markets have contributed to the observed decline in US entrepreneurship. Using a unique panel dataset of US households and a difference-in-differences identification strategy, our study is unique in theoretically predicting and empirically documenting asymmetric inter-industry shifts in entrepreneurial activity across different sectors in response to increased competition from lower-cost imports. Greater import competition reduces entry in exposed industries by individuals with low occupational skills (those in routine task-intensive service occupations or exhibiting high occupational mobility), but it increases entry by highly educated individuals in high-skill non-exposed industries. The results are robust to secular trends, labor market specialization, local collateral and credit shocks, and long-run bank distress.
Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3056827
Url: https://www.ssrn.com/abstract=3056827
User Submitted?: No
Authors: Aslan, Hadiye; Kumar, Praveen
Periodical (Full): WFA 2018 Meeting Paper; EFA 2019 Meeting Paper.
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Data Collections: IPUMS USA
Topics: Housing and Segregation, Labor Force and Occupational Structure
Countries: United States