Full Citation

Title: Slicing the Pie: Quantifying the Aggregate and Distributional Effects of Trade

Citation Type: Working Paper

Publication Year: 2017

ISBN:

ISSN:

DOI: 10.3386/w23737

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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.

Url: http://www.nber.org/papers/w23737.pdf

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Authors: Galle, Simon; Rodríguez-Clare, Andrés; Yi, Moises

Series Title: NBER Working Paper Series

Publication Number: 23737

Institution: National Bureau of Economic Research

Pages:

Publisher Location: Cambridge, MA

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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