Impacts of trade on wage inequality in Los Angeles: Analysis using matched employer-employee data

Annals of the Association of American Geographers

Volumn 98, Issue 4, 2008, Pages 920-940

  Rigby, David ^a   Breau, Sebastien ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b MCGILL UNIVERSITY   (Canada)

Author keywords

Employer employee data; Trade; Wage inequality

Indexed keywords

COMPETITION (ECONOMICS); EDUCATIONAL ATTAINMENT; IMPORT; SKILLED LABOR; TECHNOLOGICAL CHANGE; THEORETICAL STUDY; TRADE PERFORMANCE; TREND ANALYSIS; WAGE GAP;

CALIFORNIA; LOS ANGELES; NORTH AMERICA; UNITED STATES;

EID: 65449174841     PISSN: 00045608     EISSN: 14678306     Source Type: Journal    
DOI: 10.1080/00045600802219786     Document Type: Article

References (95)

1. Abowd, J., Haltiwanger, J. and Lane, J. (2004) Integrated longitudinal employer - employee data for the United States. American Economic Review, 94, pp. 224-229.
2. Acemoglu, D. (2002) Technical change, inequality, and the labor market. Journal of Economic Literature, 40, pp. 7-72.
3. Anderton, B. and Brenton, P. (1999) Did outsourcing to low-wage countries hurt less-skilled workers in the U.K.?. Global trade and European workers, pp. 147-166. Macmillan, Basingstoke, U.K.
4. Ashenfelter, O., Layard, P. R. G. and Card, D. E. (1986) Handbook of labor economics, North-Holland, New York
5. Attanasio, O., Goldberg, P. and Pavcnik, N. (2004) Trade reforms and wage inequality in Colombia. Journal of Development Economics, 74, pp. 331-366.
6. Badcock, B. (1997) Restructuring and spatial polarization in cities. Progress in Human Geography, 21, pp. 251-262.
7. Balassa, B. (1979) Export composition and export performance in the industrial-countries, 1953-71. Review of Economics and Statistics, 61, pp. 604-607.
8. Baldwin, J. (1995) The dynamics of industrial competition: A North American perspective, Cambridge University Press, Cambridge, U.K.
9. Baldwin, R. E. and Cain, C. G. (2000) Shifts in relative U.S. wages: The role of trade, technology, and factor endowments. Review of Economics and Statistics, 82, pp. 580-595.
10. Bartelsman, E., Becker, R. and Gray, W. (2000) The NBER-CES manufacturing industry database, National Bureau of Economic Research Technical Working Paper No. 205
11. Bartelsman, E. and Doms, M. (2000) Understanding productivity: Lessons from microdata. Journal of Economic Literature, 38, pp. 569-594.
12. Bernard, A., Brad, J. Jensen and Schott, P. (2006) Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants. Journal of International Economics, 68, pp. 219-237.
13. Bhagwati, J. (1991) The world trading system at risk, Princeton University Press, Princeton, NJ
14. Bhagwati, J. and Dehejia, V. (1994) Free trade and wages of the unskilled: Is Marx striking again?. Trade and wages, pp. 36-75. American Enterprise Institute, Washington, DC
15. Bluestone, B. and Harrison, B. (1982) The deindustrialization of America, Basic Books, New York
16. Borjas, G., Freeman, R. and Katz, L. (1992) On the labor market effects of immigration and trade. Immigration and the workforce, pp. 213-244. Chicago University Press, Chicago
17. Breau, S. and Rigby, D. L. (2006) Is there really an export wage premium? A case study of Los Angeles using matched employee-employer data. International Regional Science Review, 29, pp. 297-310.
18. Brenton, P. and Pelkmans, J. (1999) Global trade and European workers, Macmillan, Basingstoke, U.K.
19. Bridge, G. (2002) Grounding globalization: The prospects and perils of linking economic processes of globalization to environmental outcomes. Economic Geography, 78, pp. 361-386.
20. Brown, C. and Medoff, J. (1989) The employer size wage effect. Journal of Political Economy, 97, pp. 1027-1059.
21. Chakravorty, S. (1996) Urban inequality revisited - The determinants of income distribution in U.S. metropolitan areas. Urban Affairs Review, 31, pp. 759-777.
22. Choi, E. Kwan and Greenaway, D. (2001) Globalization and labor markets, Blackwell, Oxford, U.K.
23. Collins, S. (1998) Economic integration and the American worker: An overview. Imports, exports, and the American worker, pp. 3-47. Brookings Institution Press, Washington, DC
24. Coulter, P. B. (1989) Measuring inequality: A methodological handbook, Westview, Boulder, CO
25. Davis, J. C. and Holly, B. P. (2006) Regional analysis using Census Bureau microdata at the Center for Economic Studies. International Regional Science Review, 29, pp. 278-296.
26. Deardorff, A. and Staiger, R. (1988) An interpretation of the factor content of trade. Journal of International Economics, 24, pp. 93-107.
27. Dicken, P. (2004) Geographers and "globalization": (Yet) another missed boat?. Transactions of the Institute of British Geographers, 29, pp. 5-26.
28. Drayse, M. H. (2004) Local labor market restructuring and the employment of welfare recipients in Los Angeles County. Urban Geography, 25, pp. 139-172.
29. Drennan, M. P. (2005) Possible sources of wage divergence among metropolitan areas of the United States. Urban Studies, 42, pp. 1609-1620.
30. Feenstra, R. and Hanson, G. (1996) Globalization, outsourcing, and wage inequality. American Economic Review, 86, pp. 240-245.
31. Feenstra, R., Romalis, J. and Schott, P. (2002) U.S. imports, exports and tariff data, 1989-2001. National Bureau of Economic Research Working Paper No. 9387
32. Finney, M. (1998) The Los Angeles economy - A short overview. Cities, 15, pp. 149-153.
33. Forbes, K. (2001) Skill classification does matter: Estimating the relationship between trade flows and wage inequality. Journal of International Trade and Development, 10, pp. 175-209.
34. Freeman, R. (1995) Are your wages set in Beijing?. The Journal of Economic Perspectives, 9, pp. 15-32.
35. Galiani, S. and Sanguinetti, P. (2003) The impact of trade liberalization on wage inequality: Evidence from Argentina. Journal of Development Economics, 72, pp. 497-513.
36. Grant, R. (2000) The economic geography of global trade. A companion to economic geography, pp. 411-431. Blackwell, London
37. Grobar, L. M. (1999) Export-linked employment in southern California. Contemporary Economic Policy, 17, pp. 97-108.
38. Grossman, G. M. and Helpman, E. (1991) Innovation and growth in the global economy, MIT Press, Cambridge, MA
39. Hanson, G. and Harrison, A. (1999) Trade liberalization and wage inequality in Mexico. Industrial and Labor Relations Review, 52, pp. 271-288.
40. Haskell, J. and Slaughter, M. (1998) Does the sector bias to skilled-biased technological change explain changing wage inequality?. National Bureau of Economic Research Working Paper No. 6565
41. Haskell, J. and Slaughter, M. (2001) Trade, technology and UK wage inequality. The Economic Journal, 111, pp. 163-187.
42. Haskell, J. and Slaughter, M. (2002) Does the sector bias of skill-biased technical change explain changing skill premia?. European Economic Review, 46, pp. 1757-1783.
43. Heckscher, E. (1919) The effect of foreign trade on the distribution of income. Ekonomisk Tidskrift, 21, pp. 497-512.
44. Hellerstein, J., Neumark, D. and Troske, K. (1999) Productivity and workers characteristics: Evidence from plant-level production functions and wage equations. Journal of Labor Economics, 17, pp. 409-446.
45. Helpman, E. and Krugman, P. (1985) Market structure and foreign trade, MIT Press, Cambridge, MA
46. Jenkins, S. P. (1991) The measurement of income inequality. Economic inequality and poverty: International perspectives, pp. 13-41. M. E. Sharpe, Armonk, NY
47. Jenkins, S. P. (2001) Ineqdeco: Stata module to calculate inequality indices with decomposition by subgroup, Statistical Software Components, Boston College, Department of Economics, Boston, MA
48. Katz, L. and Murphy, K. (1992) Change in relative wages, 1963-1987: Supply and demand factors. Quarterly Journal of Economics, 107, pp. 35-78.
49. Kroll, C. A. and Jaffee, D. M. (1998) Foreign trade and California's economic growth, California Policy Seminar Report, Berkeley, CA
50. Krugman, P. (1979) Increasing returns, monopolistic competition, and international trade. Journal of International Economics, 9, pp. 469-479.
51. Krugman, P. (1995) Technology, trade and factor prices, National Bureau of Economic Research Working Paper No. 5355
52. Krugman, P. and Obstfeld, M. (2006) International economics: Theory and policy, Addison-Wesley, Boston
53. Lardner, J. (2005) What's the problem?. Inequality matters: The growing economic divide in America and its poisonous consequences, pp. 15-24. New Press, New York
54. Lawrence, R. (1995) Exporters, jobs, and wages in U.S. manufacturing 1976-1987 - Comments and discussion. Brookings papers on economic activity, pp. 113-117. Brookings Institution, Washington, DC
55. Lawrence, R. and Slaughter, M. (1993) Trade and U.S. wages: Great sucking sound or small hiccup?. Brookings papers on economic activity, microeconomics, pp. 161-211. Brookings Institution, Washington, DC
56. Leamer, E. (1993) Trade, wages and revolving door ideas. National Bureau of Economic Research Working Paper No. 4716
57. Leamer, E. (1996) In search of Stolper-Samuelson effects on U.S. wages. National Bureau of Economic Research Working Paper No. 5427
58. Leichenko, R. and Silva, J. (2004) International trade, employment and earnings: Evidence from US rural counties. Regional Studies, 38, pp. 355-374.
59. Levernier, W., Rickman, D. S. and Partridge, M. D. (1995) Variation in US state income inequality: 1960-1990. International Regional Science Review, 18, pp. 355-378.
60. Levy, F. and Murnane, R. (1992) U.S. earnings levels and earnings inequality: A review of recent trends and proposed explanations. Journal of Economic Literature, 30, pp. 1333-1381.
61. Leyshon, A. (1995) Missing words-Whatever happened to the geography of poverty. Environment and Planning A, 27, pp. 1021-1025.
62. Lowenthal, A. F., Best, L. T. and Browrigg, M. (2001) Strengthening Southern California's international connections: Trade andiInvestment aspects, University of Southern California, Southern California Studies Center (SC2), Los Angeles
63. Machin, S., Ryan, A. and van Reenen, J. (1996) Technology and changes in skill structure: Evidence from a panel on international industries. Discussion Paper 1434, Center for Economic Policy Research, Washington, DC
64. Madden, J. F. (2000) Changes in income inequality within U.S. metropolitan areas, W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
65. Marjit, S. and Acharyya, R. (2003) International trade, wage inequality and the developing economies: A general equilibrium approach, Physica/ Springer Verlag, Heidelberg, Germany
66. Martin, R. (2001) Editorial: The geographer as social critic - Getting indignant about income inequality. Transactions of the Institute of British Geographers, 26, pp. 267-272.
67. McGuckin, R. and Pascoe, G. (1988) The longitudinal research database: Status and research possibilities. Survey of Current Business, 68, pp. 30-37.
68. Morrill, R. (2000) Geographic variation in change in income inequality among US states, 1970-1990. Annals of Regional Science, 34, pp. 109-130.
69. Moulton, B. (1990) An illustration of a pitfall in estimating the effects of aggregate variables on micro-units. The Review of Economics and Statistics, 72, pp. 334-338.
70. Nielsen, F. and Alderson, A. (1997) The Kuznets curve and the great-U turn: Income inequality in U.S. counties, 1970-1990. American Sociological Review, 62, pp. 12-33.
71. Odland, J. and Ellis, M. (2001) Changes in the inequality of earnings for young men in metropolitan labor markets, 1979-1989: The effects of declining wages and sectoral shifts within an efficiency wage framework. Economic Geography, 77, pp. 148-179.
72. Ohlin, B. (1933) Interregional and international trade, Harvard University Press, Cambridge, MA
73. Partridge, M. D., Rickman, D. S. and Levernier, W. (1996) Trends in US income inequality: Evidence from a panel of states. Quarterly Review of Economics and Finance, 36, pp. 17-37.
74. Pastor, M. (2001) Widening the winner's circle from global trade in Southern California, Pacific Council on International Policy, Los Angeles
75. Rey, S. and Janikas, M. (2005) Regional convergence, inequality and space. Journal of Economic Geography, 5, pp. 155-176.
76. Richardson, D. (1995) Income inequality and trade: How to think, what to conclude. Journal of Economic Perspectives, 9, pp. 33-55.
77. Rigby, D. L. and Breau, S. (2004) Prospects for Los Angeles in an era of globalization, Haynes Foundation, Los Angeles
78. Sachs, J. and Schatz, H. (1994) Trade and jobs in US manufacturing. Brookings papers on economic activity, pp. 1-84. Brookings Institution, Washington, DC
79. Samuelson, P. A. (1948) International trade and the equalisation of factor prices. Economic Journal, 58, pp. 163-184.
80. Scott, A. J. (2001) Global city-regions: Trends, theory, policy, Oxford University Press, New York
81. Silva, J. and Leichenko, R. (2004) Regional income inequality and international trade. Economic Geography, 80, pp. 261-286.
82. Slaughter, M. (1998) International trade and labor-market outcomes: Results, questions, and policy options. The Economic Journal, 108, pp. 1452-1462.
83. Slaughter, M. (1998) What are the results of product-price studies and what can we learn from their differences?. National Bureau of Economic Research Working Paper No. 6591
84. Stolper, W. and Samuelson, P. A. (1941) Protection and real wages. Review of Economic Studies, 9, pp. 58-73.
85. Storper, M. (2000) Globalization, localization, and trade. The Oxford handbook of economic geography, pp. 146-165. Oxford University Press, Oxford, U.K.
86. Taylor, P. (2000) World cities and territorial states under conditions of contemporary globalization. Political Geography, 19, pp. 5-32.
87. Thottam, J. (2004) Is your job going abroad?. Time
88. Thurow, L. (1984) The disappearance of the middle-class. New York Times
89. Treverton, G. F. (2001) Making the most of southern California's global engagement, Pacific Council on International Policy, Los Angeles
90. Troske, K. (1998) The worker-establishment characteristics database. Labor statistics measurement issues, pp. 371-404. University of Chicago Press, Chicago
91. Troske, K. (1999) Evidence on the employer size-wage premium for worker-establishment matched data. Review of Economics and Statistics, 81, pp. 15-26.
92. Webber, M. and Weller, S. (2001) Trade and inequality: Australia's textile, clothing and footwear industries, 1986-1996. Journal of Economic Geography, 1, pp. 381-404.
93. Wood, A. (1994) North-south trade, employment and inequality, Clarendon, Oxford, U.K.
94. Wood, A. (1995) How trade hurt unskilled workers. Journal of Economic Perspectives, 9, pp. 57-80.
95. Wood, A. (1997) Openness and wage inequality in developing countries: The Latin American challenge to east Asian conventional wisdom. World Bank Research Observer, 11, pp. 33-57.