DP12173 | Services Input Intensity and US Manufacturing Employment Responses to the China Shock

Publication Date

07/22/2017

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Abstract

We present evidence that the negative effect of the China shock on US manufacturing employment is lower for industries that use services inputs more intensively. Different potential mechanisms for this finding are analyzed. This reveals significant heterogeneity across different types of services and their potential role in affecting labor demand and supply responses to greater import competition.