Title: Market competition and employment in construction sector in the USA: evidence from trade liberalisation

Authors: Hossein Shahri; Hamid Noghanibehambari

Addresses: Department of Civil Engineering, Texas Tech University, Lubbock, TX 79409, USA ' Center for Demography of Health and Aging, University of Wisconsin-Madison, 1180 Observatory Drive, Madison, WI 53706, USA

Abstract: This paper investigates the effect of US-China trade liberalisation on the employment outcomes of workers in construction industries. Using individual-level data from the US decennial census, American Community Survey, and Current Population Survey data (over 70 million observations) and applying a difference-in-difference methodology that compares the outcomes of individuals in high versus low exposure to tariff reductions after the reform to before, we find negative and significant effects of trade liberalisation for employment in construction industries. The effects hold for both extensive and intensive margins, across a wide range of specifications, and various outcomes. A heterogeneity analysis reveals higher effects among males and non-Hispanic whites. The results call for compensatory policies for workers in industries that are negatively affected by trade policy changes.

Keywords: trade liberalisation; unemployment; construction; manufacturing; competition; income; trade relations; USA.

DOI: 10.1504/IJEME.2021.120156

International Journal of Engineering Management and Economics, 2021 Vol.6 No.4, pp.292 - 316

Received: 01 May 2021
Accepted: 07 Aug 2021
Published online: 07 Jan 2022 *