“Firm Reorganization, Chinese Imports, and US Manufacturing Employment” Link
Abstract What is the impact of Chinese imports on employment of US manufacturing firms? Previous papers have found a negative effect of Chinese imports on employment in US manufacturing establishments, industries, and regions. However, I show theoretically and empirically that the impact of offshoring on firms - which can be thought of as collections of establishments - differ from the impact on individual establishments, because offshoring reduces costs at the firm level. These cost reductions can result in firms expanding their total manufacturing employment in industries in which the US had a comparative advantage relative to China, even as specific establishments within the firm shrink. Using novel data on firms from the US Census Bureau, I show that the data support this view: US firms expanded manufacturing employment as reorganization toward less exposed industries in response to increased Chinese imports in US output and input markets allowed them to reduce the cost of production. More exposed firms expanded employment by 2 percent more per year as they hired more (i) production workers in manufacturing, whom they paid higher wages, and (ii) in services complementary to high-skilled and high-tech manufacturing, such as R&D, design, engineering, and headquarters services. In other words, although Chinese imports may have reduced employment within some establishments, these losses were more than offset by gains in employment within the same firms. Contrary to conventional wisdom, firms exposed to greater Chinese imports created more manufacturing and nonmanufacturing jobs than non-exposed firms. In contrast to many other countries, the U.S. does not have a national curriculum, leaving states, school districts, or even individual schools free to choose the materials covered in their classrooms. This decentralization of curricular decisions may allow schools to choose curricula that are better aligned with the needs of their particular student populations but may misalign instruction with the priorities of the larger community. Decentralization may also harm the achievement of mobile students, who must change curricula when they change schools. This paper analyzes the effect of curriculum standardization on student achievement using quasi-experimental variation from New York City, which granted cutoff-based exemptions from its standardized math and reading curricula. Regression discontinuity estimates indicate that curriculum standardization had no significant effects on student achievement in general or for mobile students. The lack of benefit for mobile students is consistent with the notion that differences in curricula explain little of mobility achievement gap. Close
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